Q1：(7-A1 )
1. Exhibit I
RAPIDBUY ELECTRONICS, INC.
嘱咐
Mall of America Store
Budgeted Income Statement
For the Three Months Ending August 31, 20X8
actressSales $300,000
Cost of goods sold (.62 × $300,000)
Gross profit $114,000
186,000 Operating expens:
Salaries, wages, commissions $60,000
Other expens 12,000
Depreciation 1,500
Rent, taxes and other fixed expens 33,000
Income from operations. $ 7,500
106,500
Interest expen*
Net income $ 6,162
1,338
* See schedule g for calculation of interest.
Exhibit II
RAPIDBUY ELECTRONICS, INC.
Mall of America Store
Cash Budget
For the Three Months Ending August 31, 20X8
June July Beginning cash balance $ 5,800 $ 5,600 $ 5,079
August
Minimum cash balance desired 5,000 5,000 (a) Available cash balance 5,000
$ 800 $ 600 $ 79 Cash receipts & disburments:
Collections from customers
(schedule b) $ 75,200 $121,400 $ 90,800 Payments for merchandi
(schedule d) (86,800) (49,600) (49,600) Fixtures (purchad in May) (11,000) - - Payments for operating
expens (schedule f) (44,600) (30,200)
(b) Net cash receipts & disburments $(67,200) $ 41,600 $ 11,000
(30,200) Excess (deficiency) of cash before
financing (a + b) (66,400) 42,200
Financing:
11,079
Borrowing, at beginning of period $ 67,000$ - $ - Repayment, at end of period - (41,000) (10,000)
)* Interest, 10% per annum - (1,121)* (217 (c) Total cash increa (decrea)
from financing $ 67,000 $(42,121) $(10,217
) (d) Ending cash balance (beginning
balance + b + c) $ 5,600 $ 5,079 $ 5,862 * See schedule g
Exhibit III
RAPIDBUY ELECTRONICS, INC.
Mall of America Store
Budgeted Balance Sheet
August 31, 20X8
Asts Liabilities and Owners’ Equity Cash (Exhibit II) $ 5,862 Accounts payable $ 37,200
Accounts receivable* 86,400 Notes payable 16,000 Merchandi inventory **
37,200
Total current asts $129,462
Total current liabilities $ 53,200 Net fixed asts: Owners' equity:
$33,600 less $102,200 plus net
depreciation of $1,500 32,100 income of $6,162
Total asts $161,562 Total equities $161,562
108,362
*July sales, 20% × 90% × $80,000 $ 14,400
August sales, 100% × 90% × $80,000
Accounts receivable $86,400
72,000
** See schedule g
cross roadJune July August Total Schedule a: Sales Budget
Credit sales (90%) $126,000 $72,000 $72,000 $270,000
Cash sales (10%) 14,000 8,000 8,000
Total sales (to Exhibit I) $140,000 $80,000 $80,000 $300,000
30,000
Schedule b: Cash Collections
June July August
Cash sales $ 14,000 $ 8,000 $ 8,000霍金的宇宙
On accounts receivable from:
April sales 10,800 - -
May sales 50,400 12,600 -
June sales - 100,800 25,200
expo是什么意思July sales - - 57,600
Total collections (to Exhibit II) $75,200 $121,400 $90,800
Schedule c: Purchas Budget May June July
Desired purchas:
August
62% × next month's sales $86,800 $49,600 $49,600 $37,200 Schedule d: Disburments for PurchasJune July
Last month's purchas (to Exhibit II) $86,800 $49,600 $49,600
August
outline是什么意思
Other required items related to purchas
Accounts payable, August 31, 2008
(62% × September sales - to Exhibit III) $37,200
Cost of goods sold (to Exhibit I) $86,800 $49,600 $49,600 Schedule e: Operating Expen Budget
Total
June July August
Salaries, wages, commissions $28,000 $16,000 $16,000 $60,000 Other Variable expens 5,600 3,200 3,200 12,000 Fixed expens 11,000 11,000 11,000 33,000
英语圣诞节祝福语1,500 Depreciation 500 500 500
Total operating expens $45,100 $30,700 $30,700 $106,500 Schedule f: Payments for Operating Expens
June July
August Variable expens $33,600 $19,200 $19,200
11,000 Fixed expens 11,000 11,000
Total payments for operating expens $44,600 $30,200 $30,200 Schedule g: Interest calculations
August
June July
Beginning balance $67,000 $67,558 $26,000 Monthly interest expen @ 10% 558 563
217 Ending balance before repayment $67,558 68,121 26,217 Principal repayment (from
statement of receipts and disburments) (41,000) (10,000) Interest payment (1,121)
(217) Ending balance $26,000 $16,000 2. This is an example of the classic short-term, lf-liquidating loan. The need for
such a loan often aris becau of the asonal nature of a business. The basic
source of cash is proceeds from sales to customers. In times of peak sales, there
is a lag between the sale and the collection of the cash, yet the payroll and
suppliers must be paid in cash right away. When the cash is collected, it in turn
may be ud to repay the loan. The amount of the loan and the timing of the
repayment are heavily dependent on the credit terms that pertain to both the
purchasing and lling functions of the business.
Q2 (7-25)
A key to employee acceptance of a budget is participation. Budgets created with the
active participation of all affected employees are generally more effective than
budgets impod on subordinates. If a budget is to help direct future activities,
employees must accept the budget. Acceptance means believing that the budget
reflects a desired future path for the organization. If a manager has been a
participant in determining the future path – that is, helped develop the budget – he or
she is more likely to accept it as a desirable objective.
Q3 (7-36)
The collections from March sales are a bit tricky. Note that the receivable balance
from March sales at March 31 is $450,000; therefore, four fifths (becau 40/50 will
be collected in April and 10/50 will be collected in May) will be received in April.
MERRILL NEWS AND GIFTS
Budgeted Statement of Cash Receipts and Disburments
For the Month Ending April 30, 20X7
Cash balance, March 31, 20X7 $ 100,000 Add receipts, collections from customers:
From April sales, 1/2 × $1,000,000 $500,000
From March sales, 4/5 × $450,000 360,000
940,000 From February sales 80,000
Total cash available $1,040,000 Less disburments:
Merchandi purchas, $450,000 × 40% $180,000
Payment on accounts payable 460,000
Payrolls 90,000
Insurance premium 1,500
Other expens 45,000
Repayment of loan and interest 97,200
873,700 Cash balance, April 30, 20X7 $ 166,300
Q4 (7-40)
新视野大学英语3课文翻译1. An optimistic preliminary budget might be as follows, assuming level sales
volume, a $.94 per pound price, and a 2% decrea in variable costs.
Sales, 1.6 million pounds @ $.94/pound $1,504,000烫发类型
Variable costs (862,400)
) Fixed costs, primarily depreciation (450,000
Pretax profit $ 191,600
This budget does not meet the $209,000 profit goal. Stark has a dilemma of
submitting a realistic budget that does not meet Philp's goal or preparing an
unrealistic budget. The following budget, which assumes that prices will not fall, sales levels will be maintained, and some fixed costs will be saved, would meet the profit target. Although Stark does not believe the assumptions, she might feel pressure to submit it (or something similar) to headquarters:
Sales, 1.6 million pounds @ $.95/pound $1,520,000
Variable costs, .98 × $880,000 (862,400)
)* Fixed costs, primarily depreciation (448,600
Pretax profit $ 209,000
*$1,520,000 - $862,400 - $209,000
2.Two major problems are the arbitrary tting of budget targets by top
management without regard to whether the targets can be achieved and the
draconian measures ud when a budget is not met, even if the shortfall is
small or reasonable explanations for the shortfall are given.
3. Apparently the preliminary financial results are as follows:
Sales, 1.6 million pounds @ $.945/pound $1,512,000
Variable costs, .98 × $880,000 (862,400)
(450,000) Fixed costs, primarily depreciation
Pretax profit $ 199,600
Extending the depreciable lives of fixed asts by 2 years could increa this profit by $15,000 to $214,600, well above the target. But doing so would be manipulating the accounting system to achieve desirable results. When the
estimates of depreciable lives were first made, there may have been much
uncertainty in the estimates. However, changing the accounting method to
make the financial results look better is an ethical violation.
Managers should not change accounting methods just to make their
winter怎么读performance look better (or in this ca, to save their job). Although
changing the depreciation schedule is not ethical, it is easy to e how the
budgeting process creates an incentive for such unethical behavior. If the
budget and reporting process makes excellent performance appear deficient,
there may be great temptation for managers to cheat the system.
Q5 (7-43)
