Question

Developing a Master Budget- Please answer the bottom bolded "ANSWERS" at the bottom.
for a Merchandising Organization
Peyton Department Store prepares budgets quarterly. The following information is available for use in planning the second quarter budgets for 2010.

PEYTON DEPARTMENT STORE Balance Sheet March 31, 2010
Assets		Liabilities and Stockholders' Equity
Cash	$2,000	Accounts payable	$26,000
Accounts receivable	25,000	Dividends payable	17,000
Inventory	30,000	Rent payable	1,000
Prepaid Insurance	2,000	Stockholders' equity	40,000
Fixtures	25,000
Total assets	$84,000	Total liabilities and equity	$84,000

Actual and forecasted sales for selected months in 2010 are as follows:

Month	Sales Revenue
January	$80,000
February	50,000
March	40,000
April	50,000
May	60,000
June	70,000
July	90,000
August	80,000

Monthly operating expenses are as follows:

Wages and salaries	$27,000
Depreciation	100
Utilities	1,000
Rent	1,000

Cash dividends of $17,000 are declared during the third month of each quarter and are paid during the first month of the following quarter. Operating expenses, except insurance, rent, and depreciation are paid as incurred. Rent is paid during the following month. The prepaid insurance is for five more months. Cost of goods sold is equal to 50 percent of sales. Ending inventories are sufficient for 120 percent of the next month's sales. Purchases during any given month are paid in full during the following month. All sales are on account, with 50 percent collected during the month of sale, 40 percent during the next month, and 10 percent during the month thereafter. Money can be borrowed and repaid in multiples of $1,000 at an interest rate of 12 percent per year. The company desires a minimum cash balance of $2,000 on the first of each month. At the time the principal is repaid, interest is paid on the portion of principal that is repaid. All borrowing is at the beginning of the month, and all repayment is at the end of the month. Money is never repaid at the end of the month it is borrowed.

(a) Prepare a purchases budget for each month of the second quarter ending June 30, 2010.

Peyton Department Store Monthly Purchase Budget Quarter Ending June 30, 2010
	April	May	June	Total
Budgeted purchases	31,000	36,000	47,000	114,000

(b) Prepare a cash receipts schedule for each month of the second quarter ending June 30, 2010. Do not include borrowings.

Peyton Department Store Schedule of Monthly Cash Receipts Quarter Ending June 30, 2010
	April	May	June	Total
Total cash receipts	46,000	54,000	64,000	164,000

(c) Prepare a cash disbursements schedule for each month of the second quarter ending June 30, 2010. Do not include repayments of borrowings.

Peyton Department Store Schedule of Monthly Cash Disbursements Quarter Ending June 30, 2010
	April	May	June	Total
Total cash disbursements	72,000	60,000	65,000	197,000

(d) Prepare a cash budget for each month of the second quarter ending June 30, 2010. Include budgeted borrowings and repayments.

Only use negative signs, if needed, for: excess receipts over disbursements, balance before borrowings and cash balances (beginning and ending).

Peyton Department Store Monthly Cash Budget Quarter Ending June 30, 2010
	April	May	June	Total
Cash balance, beginning	2000	2000	2000	6000
Receipts	46,000	54,000	64,000	164,000
Disbursements	72,000	60,000	65,00	197,000
Excess receipts over disb.	-26,000	-6000	1000	-33000
Balance before borrowings	-24000	-4000	1000	31000
Borrowings	26,000	6000	1000	33000
Loan repayments	0	0	0	0
Cash balance, ending	2000	2000	2000	2000

(e) Prepare an income statement for each month of the second quarter ending June 30, 2010.

Only use negative signs to show net losses in income.

Peyton Department Store Budgeted Monthly Income Statements Quarter Ending June 30, 2010
	April	May	June	Total
Sales	50000	60000	70000	180000
cost of sales	25000	30,000	35,000	90,000
Gross profit	25,000	30000	35,000	90,000
Operating expenses:
Wages and salaries	27000	27000	27000	81,000
Depreciation	100	100	100	300
Utilities	1000	1000	1000	3000
Rent	1000	1000	1000	3000
Insurance	400	400	400	1200
Interest	Answer	Answer	Answer	Answer
Total expenses	Answer	Answer	Answer	Answer
Net income	Answer	Answer	Answer	Answer

(f) Prepare a budgeted balance sheet as of June 30, 2010.

Peyton Department Store Budgeted Balance Sheet June 30, 2010
Assets		Liabilities and Equity
Cash	2000	Merchandise payable	47,000
Accounts receivable	41000	Dividend payable	17000
Inventory	54000	Rent payable	1000
Prepaid insurance	800	Loans payable	33,000
Fixtures	24,700	Interest payable	Answer
Total assets	122500	Stockholders' equity	Answer
		Total liab. & equity	122500

i cant figure out answers at the bottom including interest, stockholders equity, total liabilities, etc.

the answers i need assistance with are filled in with the word answer and are bolded

Answer 1

If there is any doubt with the answer please comment & give positive rating

(e)

Peyton Department Store
Budgeted Monthly Income Statements
Quarter Ending June 30, 2010
	April	May	June	Total
Sales	$        50,000.00	$          60,000.00	$        70,000.00	$               180,000.00
cost of sales	$        25,000.00	$          30,000.00	$        35,000.00	$                 90,000.00
Gross profit	$        25,000.00	$          30,000.00	$        35,000.00	$                 90,000.00
Operating expenses:
Wages and salaries	$        27,000.00	$          27,000.00	$        27,000.00	$            81,000.00
Depreciation	$              100.00	$               100.00	$              100.00	$                 300.00
Utilities	$          1,000.00	$            1,000.00	$          1,000.00	$              3,000.00
Rent	$          1,000.00	$            1,000.00	$          1,000.00	$              3,000.00
Insurance (2000/5 = 400 per month	$              400.00	$               400.00	$              400.00	$              1,200.00
Interest	$              260.00 (26000 x 12% /12 months)	$               320.00 (32000 x 12%/12 )	$              330.00 (33000 x 12%/12)	$                 910.00
Total expenses	$        29,760.00	$          29,820.00	$        29,830.00	$                 89,410.00
Net income	$        (4,760.00)	$               180.00	$          5,170.00	$                       590.00

(f)

Peyton Department Store
Budgeted Balance Sheet
30-Jun-10
Assets		Liabilities and Equity
Cash	$          2,000.00	Merchandise payable	$        47,000.00
Accounts receivable	$        41,000.00	Dividend payable	$        17,000.00
Inventory	$        54,000.00	Rent payable	$          1,000.00
Prepaid insurance	$              800.00	Loans payable	$        33,000.00
Fixtures	$        24,700.00	Interest payable	$              910.00
Total assets	$      122,500.00	Stockholders' equity (40,000+590-17000)	$        23,590.00
		Total liabilities & equity	$      122,500.00