Overview of Managerial Accounting

Running head: MANAGERIAL ACCOUNTING
Managerial Accounting
Name of the Student:
Name of the University:
Author Note

1MANAGERIAL ACCOUNTING
Table of Contents
Introduction:................................................................................................2
1. Sales budget:..........................................................................................2
2. Cash receipts budget:.............................................................................2
3. Purchases budget:...................................................................................3
4. Cash payments budget:..........................................................................3
5. Summary of the cash budget:.................................................................4
6. Analysing the short-term financial needs:...............................................5
7. Preparing Universal’s budgeted income statement for the first quarter: 5
8. Preparing Universal’s budgeted statement of retained earnings for the
first quarter:................................................................................................6
9. Preparing Universal’s budgeted balance sheet as at 31 March:..............6
Conclusion:..................................................................................................7
References and Bibliography:......................................................................8

2MANAGERIAL ACCOUNTING
Introduction:
The assessment aims in analysing the 1st quarter budget for
Universal Electric Company, which would be continued in Next year. The
calculations are conducted, where all the relevant information such as
sales budget, cash receipt budget, Purchases budget, Cash payments
budget, summary cash budget, short-term financial needs, income
statement, statement of retained earnings and budgeted balance sheet.
The information presented in the case study of Universal Electric
Company has been used for preparing all the relevant budgets, which
might help in determining the appropriate level of activates in the next
financial quarter. Hence, the projected income and expenses depicted it
the case study has been used for preparing the budget.
1. Sales budget:
Sales
budget
Current Next year
Decembe
r January
Februa
ry March
1st
quarter
Total
sales 400,000 440,000 484,000 532,400
1,456,40
0
Cash
sales 100,000 110,000 121,000 133,100 364,100
Credit
sales 300,000 330,000 363,000 399,300
1,092,30
0
The above table indicates about the overall sales budget for
Universal Electric Company, which could be conducted in the next three
months. The calculations have been conducted by utilizing the current
month information, where the growth rate is multiplied with the current
sales values to determine the total sales value (Mohamed, Evans and
Tirimba 2015).
2. Cash receipts budget:
Cash receipts

3MANAGERIAL ACCOUNTING
budget
Cash receipts budget
January
Februa
ry March
1st
quarter
Cash sales 110,000 121,000 133,100 364,100
Cash receipts from
credit
sales made during
current month 33,000 36,300 39,930 109,230
Cash receipts from
credit
sales made during
preceding month 270,000 297,000 326,700 893,700
Total cash receipts 413,000 454,300 499,730
1,367,03
0
The information of the cash receipt budget would mainly allow the
company to determine the appropriate level of cash receipts that would
be generated from sales. The cash receipts consist of cash sales, cash
receipts during current month and cash receipts from previous month.
This would ensure the total cash receipts over the period of next three
months (Ejoh and Ejom 2014).
3. Purchases budget:
Purchases budget
Current
year Next year
Decemb
er
Januar
y
Febru
ary March
1st
quarte
r
Budgeted cost of goods
sold 280,000
308,00
0
338,80
0
372,68
0
1,019,4
80
Add Desired ending
inventory 154,000
169,40
0
186,34
0
186,34
0
542,08
0
Total goods needed 434,000
477,40
0
525,14
0
559,02
0
1,561,5
60
Less Expected
beginning inventory 140,000
154,00
0
169,40
0
186,34
0
509,74
0