The Watering Hole Notes

  • The Watering Hole is a retail establishment that sells fishing and boating gear\n\nThe Watering Hole is a retail establishment that sells fishing and boating gear. The owner,\n\nTheresa Washington, has enlisted you to prepare a budget for the next quarter, which is her\n\nbusiest time of year. Her primary concern is her cash position. She anticipates having to\n\nfinance inventory purchases in anticipation of an upswing in demand.\n\nA Please prepare a cash budget for April-June 2017 with supporting schedules in Excel. (See\n\nformat outlined) Balance Sheet as of March 32 2017\n\nAssets\n\nCash\n\nAccounts Receivable\n\nInventory\n\nPlant and quipment (Net of Depreciation)\n\nTotal Assets $\n\n$\n\n$\n\n$\n\n$ 9,000\n\n48,000\n\n12,600\n\n200,000\n\n269,600 Interest Payable $ - Note Payable $ - Accounts Payable\n\nTotal Liabilities $\n\n$ 18,300\n\n18,300 Capital Stock $ 180,000 Retained Earnings $ 71,300 Total Equity\n\nTotal Liabilities + Equity $\n\n$ 251,300\n\n269,600 Liabilities Equity Schedule A: Sales Budget\n\nApril May June April May June Credit Sales\n\nCash Sales\n\nTotal Sales\n\nSchedule B: Expected Cash Collections Schedule C: Purchases Budget for Merchandise Inventory\n\nApril\n\nMay June Total Schedule D: Expected Cash Disbursements for Inventory Purchases\n\nApril May June Total For March Inventory\n\nFor April\n\nFor May\n\nFor June\n\nSchedule E: Operating Expences And disbursments for expences\n\nCash Expences April May June Total Non Cash Expences April May June Total April May June Schedule F: Cash Budget\n\nBeginning Cash Balance Ending Cash Balance Budgeted Monthly Expences\n\nSaleries & Benefits\n\nPOIS System Fee & Equipment Maintenance\n\nUtilities\n\nInsurance\n\nAdvertising\n\nDepreciation\n\nOther Expences as % of Sales $\n\n$\n\n$\n\n$\n\n$\n\n$ Policies/Budget Assumptions:\n\nMinimum Inventory Policy as a % of next months COGS\n\nRequired Minimum Cash Balance\n\n$\n\nSales Mix, Cash/Credit\n\n20%\n\nCredit Sales are collected the following month\n\nGross Profit Rate\n\nAnnual Loan Interest Rate\n\nInterest is paid in cash monthly\n\nInventory purchases paid in cash at time of purchase\n\nInventory paid for in cash the month after purchase\n\nNew Equipment will be purchased in April for $19750 in cash\n\nDividends of $4000 will be paid in June\n\nAssume that Accounts Payable reflects Inventory Purchases\n\nInsurance is paid quarterly - March, June, Sept, and Dec 8,500\n\n425"},{"left":"","right":""},{"left":"","right":""},{"left":"","right":""}]

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