亨格瑞管理会计英文第15版练习答案07解析

CHAPTER 7 COVERAGE OF LEARNING OBJECTIVES

Introduction to Budgets and Preparing the Master Budget

7-A1 (60-90 min.)

1. Exhibit I

RAPIDBUY ELECTRONICS, INC.

Mall of America Store

Budgeted Income Statement

For the Three Months Ending August 31, 20X8

Sales $300,000 Cost of goods sold (.62 × $300,000) 186,000 Gross profit $114,000 Operating expenses:

Salaries, wages, commissions $60,000

Other expenses 12,000

Depreciation 1,500

Rent, taxes and other fixed expenses 33,000 106,500 Income from operations. $ 7,500 Interest expense* 1,338 Net income $ 6,162 * See schedule g for calculation of interest.

RAPIDBUY ELECTRONICS, INC.

Mall of America Store

Cash Budget

For the Three Months Ending August 31, 20X8

June July August Beginning cash balance $ 5,800 $ 5,600 $ 5,079 Minimum cash balance desired 5,000 5,000 5,000 (a) Available cash balance $ 800 $ 600 $ 79

Cash receipts & disbursements:

Collections from customers

(schedule b) $ 75,200 $121,400 $ 90,800 Payments for merchandise

(schedule d) (86,800) (49,600) (49,600) Fixtures (purchased in May) (11,000) - - Payments for operating

expenses (schedule f) (44,600) (30,200) (30,200) (b) Net cash receipts & disbursements $(67,200) $ 41,600 $ 11,000

Excess (deficiency) of cash before

financing (a + b) (66,400) 42,200 11,079 Financing:

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 increase (decrease)

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

RAPIDBUY ELECTRONICS, INC.

Mall of America Store

Budgeted Balance Sheet

August 31, 20X8

Assets Liabilities and Owners’ Equity

Cash (Exhibit II) $ 5,862 Accounts payable $ 37,200 Accounts receivable* 86,400 Notes payable 16,000** Merchandise inventory 37,200 Total current liabilities $ 53,200 Total current assets $129,462

Net fixed assets: Owners' equity:

$33,600 less $102,200 plus net

depreciation of $1,500 32,100 income of $6,162 108,362 Total assets $161,562 Total equities $161,562 *July sales, 20% × 90% × $80,000 $ 14,400

August sales, 100% × 90% × $80,000 72,000

Accounts receivable $86,400

** See schedule g

June 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 30,000

Total sales (to Exhibit I) $140,000 $80,000 $80,000 $300,000 Schedule b: Cash Collections

June July August

Cash sales $ 14,000 $ 8,000 $ 8,000

On accounts receivable from:

April sales 10,800 - -

May sales 50,400 12,600 -

June sales - 100,800 25,200

July sales - - 57,600

Total collections (to Exhibit II) $75,200 $121,400 $90,800 Schedule c: Purchases Budget May June July August Desired purchases:

62% × next month's sales $86,800 $49,600 $49,600 $37,200 Schedule d: Disbursements for PurchasesJune July August

Last month's purchases (to Exhibit II) $86,800 $49,600 $49,600

Other required items related to purchases

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 Expense Budget

June July August Total Salaries, wages, commissions $28,000 $16,000 $16,000 $60,000 Other Variable expenses 5,600 3,200 3,200 12,000 Fixed expenses 11,000 11,000 11,000 33,000 Depreciation 500 500 500 1,500 Total operating expenses $45,100 $30,700 $30,700 $106,500 Schedule f: Payments for Operating Expenses

June July August Variable expenses $33,600 $19,200 $19,200 Fixed expenses 11,000 11,000 11,000 Total payments for operating expenses $44,600 $30,200 $30,200 Schedule g: Interest calculations

June July August Beginning balance $67,000 $67,558 $26,000 Monthly interest expense @ 10% 558 563 217 Ending balance before repayment $67,558 68,121 26,217 Principal repayment (from

statement of receipts and disbursements) (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, self-liquidating loan. The need for such

a loan often arises because of the seasonal 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 used 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 selling functions

of the business.

7-B1 (60-120 min.) $ refers to Australian dollars.

1. See Exhibits I, II, and III and supporting schedules a, b, c, d.

2. The cash budget and balance sheet clearly show the benefits of moving to just-in-

time purchasing (though the transition would rarely be accomplished as easily as

this example suggests). However, the company would be no better off if it left

much of its capital tied up in cash -- it has merely substituted one asset for

another. At a minimum, the excess cash should be in an interest bearing account

-- the interest earned or forgone is one of the costs of inventory.

Schedule a: Sales Budget January February March

Total sales (100% on credit) $248,000 $280,000 $152,000 Schedule b: Cash Collections

60% of current month's sales $148,800 $168,000 $91,200

30% of previous month's sales 30,000 74,400 84,000

10% of second previous month's sales 10,000 10,000 24,800

Total collections $188,800 $252,400 $200,000

December January February March Schedule c: Purchases Budget

Desired ending inventory $156,200 $ 24,000* $ 24,000 $ 24,000 Cost of goods sold 50,000 124,000 140,000 76,000 Total needed $206,200 $148,000 $164,000 $100,000 Beginning inventory 64,000 156,200 32,200 24,000 Purchases $142,200 $ - $131,800 $ 76,000 * Actual ending January (and beginning February) inventory level is $32,200, as

inventory levels are drawn down toward desired level of $24,000.

Schedule d: Disbursements for Purchases

100% of previous month's purchases $142,200 $ - $131,800 March 31 accounts payable $76,000

WALLABY KITE

Cash Budget

For the Three Months Ending March 31, 20X2

January February March Cash balance, beginning $ 20,000 $ 20,400 $138,767 Minimum cash balance desired 20,000 20,000 20,000 (a) Available cash balance 0 400 118,767 Cash receipts and disbursements:

Collections from customers

(Schedule b) 188,800 252,400 200,000 Payments for merchandise

(Schedule d) (142,200) - (131,800) Rent (32,200) (1,000) (1,000) Wages and salaries (60,000) (60,000) (60,000) Miscellaneous expenses (10,000) (10,000) (10,000) Dividends (6,000) -

Purchase of fixtures - - (12,000) (b) Net cash receipts & disbursements $ (61,600) $181,400 $ (14,800)

Excess (deficiency) of cash

before financing (a + b) $ (61,600) $181,800 $103,967 Financing:

Borrowing, at beginning of period $ 62,000 $ - $ - Repayment, at end of period - (62,000)

Simple interest, 10% monthly - (1,033)

(c) Total cash increase (decrease)

from financing $ 62,000 $ (63,033) $ - (d) Cash balance, end (beginning

balance + c + b) $ 20,400 $138,767 $123,967

WALLABY KITE

Budgeted Income Statement

For the Three Months Ending March 31, 20X2

Sales (Schedule a) $680,000 Cost of goods sold (Schedule c) 340,000 Gross margin $340,000 Operating expenses:

Rent* $ 67,000

Wages and salaries 180,000

Depreciation. 3,000

Insurance 1,500

Miscellaneous 30,000 281,500 Net income from operations $ 58,500 Interest expense 1,033 Net income $ 57,467 *(January-March sales less $40,000) × .10 plus 3 × $1,000