Assignment Seasons Catering and Company

Running Head: SEASONS CATERING AND COMPANY
1
SEASONS CATERING AND COMPANY

Running Head: SEASONS CATERING AND COMPANY
Table of Contents
Question 1..................................................................................................................... 3
Question 2..................................................................................................................... 3
Question 3..................................................................................................................... 3
Question 4..................................................................................................................... 3
Question 5..................................................................................................................... 4
Question 6..................................................................................................................... 4
Question 7..................................................................................................................... 5
Question 8..................................................................................................................... 6
Revised income Statement.............................................................................................. 6
Revised Balance Sheet................................................................................................... 8

Running Head: SEASONS CATERING AND COMPANY
Question 1
Sales budget
January February March April May June Total (for Apr- Jun
Quarter)
Sales units 20000 24000 28000 35000 45000 60000 140000
Selling price 8 8 8 8 8 8 8
Sales 160000 192000 224000 280000 360000 480000 1120000
Question 2
Schedule of collection of sales January February March April May June
Total (for Apr- Jun
Quarter)
Sales 160000 192000 224000 280000 360000 480000 1120000
Collection of sales @ 25% 40000 48000 56000 70000 90000 120000 280000
Collection in following months @50% 80000 96000 112000 140000 180000 432000
Colelction in second month @ 25% 40000 48000 56000 70000 174000
Total Sales 40000 128000 192000 230000 286000 370000 886000
Question 3
Purchase budget January February March April May June
Total (for Apr- Jun
Quarter)
Units 20000 24000 28000 35000 45000 60000 140000
Desired ending inventory @90% 21600 25200 31500 40500 54000 36000 130500
Less: Beginniginventory 21600 25200 31500 40500 54000 126000
Total Purchases 41600 27600 34300 44000 58500 42000 144500
Purchase price 5 5 5 5 5 5
Total purchases 208000 138000 171500 220000 292500 210000 722500
Question 4
Schedule of disbursementsof
Purchases January February March April May June Total (for Apr- Jun
Quarter)
Total Purchases 208000 138000 171500 220000 292500 210000 722500
Payment of Purchases 104000 69000 85750 110000 146250 105000 361250
Payment of purchase in next month 104000 69000 85750 110000 146250 342000
Total collectionper month 104000 173000 154750 195750 256250 251250 703250