BUSI 101 1st Edition Lecture 24Outline of Last Lecture I. Page 186 in Coursepacka. Chapter 8 Exam Practice ProblemsII. Chapter 9 – budgetinga. Useful equationsIII. Budgeting Problems in the CoursepackOutline of Current Lecture I. Budgeting Continueda. Page 140 in Coursepack (3 problems)b. Page 187 in the Coursepack (Practice Exam Problems)c. Page 416 in the Textbooki. Problems E9-6, E9-13, E9-19Current LecturePage 140.3) Assuming that instead 20% of sales are collected in cash, credit sales still follow the same 60%, 25%, and 15%. What are cash collections in Jan., Feb., and March?January February MarchJanuary Sales 20%+60%(80%)=68% 25%(80%)=20% 15%(80%)=12%November Sales (400,000).12(400,000) =48,000These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.December Sales (600,000).20(600,000)=120,000 .12(600,000)=72,000January Sales (500,000).68(500,000)=340,000 .20(500,000)=100,000 .12(500,000)=60,000February Sales (450,000).68(450,000)=306,000 .20(450,000)=90,000March Sales (700,000) .68(700,000)=476,000Total Sales $508,000 $484,000 $626,000What is A/R @ 1/31: 232,000=(.12)(600,000)+(.32)(500,000)What is A/R @ 2/29: 204,000=(.12)(500,000)+(.32)(450,000)What is A/R @ 3/31: 278,000=(.12)(450,000)+(.34)(700,000)1. on page 140Sales 800,000-CGS 560,000=GPBeg. A/P 40,000+Purchases 580,000=Available 620,000-Payments 620,000=End A/P 0ORCGS 560,000INV. 20,000A/P 40,000Cash 620,000Beg. Inv. 0+Purchases 580,000=Available 580,000-CGS 560,000=End Inv. 20,000Beg. A/R 0+Credit Sales 800,000=Available 800,000-Collections 750,000=End A/R 50,000ORCash 750,000A/R 50,000Sales 800,0002. on page 140FG INV. X(5) Y(2)Beg. Inv.+Produced=Available-Sold =End Inv.10,000+108,000=118,000-100,000=18,000Beg. Inv.+Purchases=Available-Used=End Inv.52,000+565,000=617,000-540,000=77,00014,000+233,000=247,000-216,000=31,000Page. 187Sales April MayMarch Sales .30April Sales (290,000) .70 .30(290,000)=87,000May Sales (320,000) .70(320,000)=224,000Totals 311,000 (answer to #30)31. A/R @ 5/31: (.30)(320,000)=96,00032. A/P @ 5/31: (.60)(128,000)=76,80033. Beg. Cash 35,000+Cash Receipts 480,000 460,000+20,000(borrowed)=Available 515,000-Cash Dispersements 485,000=End Cash 30,00034.beg. materials 12,000+purchases 238,500=Available 250,500-End Materials 10,500=Materials Used 240,00035. Sales January February MarchNovember .18December .30 .18January .50 .30 .18(124,000)=22,320February .50 .30(120,000)=36,000March .50(135,000)=67,500Total 125,820Page 416E9-6) a.1st Quarter 2nd QuarterBeg. FG+produced=Available-Sold=End FG1250 (25% of 5000)+5250=6500-5000=15001500+6250=7750-6000=1750b.1st Quarter 2nd QuarterBeg. Materials+Purchases=Available-Used=End Materials6300+16,950=23,250-15,750=750017,500+19,890=27,390-18,750=86405250x3lb.=15,750 usage6250x3=18,750 usage7200x3=21,600 usage15,750x.40=6300 beg. Inv.16950x$4=$67,80019,890x$4=$79,560E9-13)Income StatementSales $2,550,000 (30,000 unitsx$85)-CGS $2,100,000 (30,000x$70)=GP $450,000-SA+E 200,000=NI B.T. 250,000-Taxes 75,000=NI A.T. 175,000DM: $10DL: 3 hours @$15=$45OHDL $15Cost per unit: $70January FebruaryCash+C/R Collections Sales M.S. Borrow=Available -C/D451,000+85,000+12,000142,00027,500+150,000+ 6,000177,500 or 183,000 w/borrowMtls. Payments Labor Payments OHD Payments S+A Payments=End Cash(50,000)(30,000)(19,500)(15,700)27,500(75,000)(45,000)(23,500)(20,000)14,000 or 20,000 w/borrowE9-19)January FebruaryCash+C/R Int. Sales Equip. Collections Borrow=Available -C/D Tax Payments Salary Payments OHD Payments S+A Payments Equip. Purchases Int. Payments30,000+12,000230,00016,000272,000 or w/borrow 288,000(140,000)(75,000)(48,000)27,50025,000+7,000380,000412,000(4,000)(140,000)(100,000)(68,000)50,000400=End Cash 25,000 w/ borrowing 49,600 – borrow 16,000 of it to pay off so final end cash=