Master of Professional Accounting

Master of Professional Accounting
TACC 507 MANAGERIAL ACCOUNTING

Introduction
The main aim is to analyse 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.

Sales Budget
Sales budget
Current Next year
December January February March 1st quarter
Total sales 400,000 440,000 484,000 532,400 1,456,400
Cash sales 100,000 110,000 121,000 133,100 364,100
Credit sales 300,000 330,000 363,000 399,300 1,092,300

Cash Receipts Budget
Cash receipts budget
Cash receipts budget
January February 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 1,367,030