Question

i posted my answer which is partially wrong specially the unit parts . please correct and submit

thanks in advance

Kraft is a Wholesale distributor of artisan cheese and ice cream. The following information is availa for April 2017. The beginning cash balance is $400,000 Required: Prepare the following for April 2017 - Be sure to read the additional information below a. Sales budget b. Purchase Budget C. Cash Budget d. Budgeted Income Statement. Note: The worksheets below are embedded Excel so you can right click: Worksheet Object: Edit or Open - add your info Top right click the X to close. (Not sure if this the same process for MAC users) Estimated Sales Cheese Ice Cream 160,000 hoops at $10 each 240,000 gallons at $5 each Estimated Costs Cheese Ice Cream $ $ 8.00 per hoop 2.00 per gallon Desired inventories Cheese Ice Cream Beginning 10,000 4,000 Ending 12,000 5,000 Additional info: Beginning cash balance is $400,000 merchandise are paid 60% in the current month and 40% in the following month. Purchases totaled $1,800,000 in March and are estimated to be $2,000,000 in May. Employee wages and salaries are paid for in the current month. Employee Expenses for April totaled $156,000. Overhead expenses are paid in the next month. The accounts payable amount for these expenses from March is $80,000 and for May will be $90,000. April's overhead expenses total $80,000 Sales are on credit and are collected 70% in the current period and the remainder in the next period. March's sales were $3,000,000 and May's sales are estimated to be $3,200,000. Bad debts average 1% of sales. (Allowance for Bad Debts -non-cash) Selling and administrative expenses are paid monthly and total $450,000, including $40,000 of depreciation. All unit costs for April are the same as they were in March.

Answer 1

Kraft

Sales Budget - April

Product	Unit Name	Quantity	Price per Unit ($)	Sales ($)
Cheese	Hoops	160,000	10	1,600,000
Ice Cream	Gallons	240,000	5	1,200,000
Total				2,800,000

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Purchase Budget - April

Particulars	Cheese	Ice Cream
Sales	160,000	240,000
Add : Closing Inventory	12,000	5,000
Less : Opening Inventory	10,000	4,000
Purchases Required (in units)	162,000	241,000
Purchases Required (in dollars)	1,296,000	482,000

Cash Budget - April

Particulars	Details ($)	Amount ($)
Opening Cash Balance		400,000
Add:
Sales Collection : Current Period	2,800,000 x 0.70	1,940,400
Sales Collection : Previous Period (after bad debts)	3,000,000 x 0.29	891,000
Less:
Purchase Costs :
Current Period	1,778,000 x 0.60	1,066,800
Previous Period	1,800,000 x 0.40	720,000
Wages & Salaries		156,000
Overhead Expenses (March)		80,000
Selling & Distribution (excluding depreciation, being non-cash)		410,000
Closing Cash Balance		798,600

Budgeted Income Statement - April

Particulars		Amount ($)
Sales		2,800,000
Less :
Purchases	1,296,000+482,000	1,778,000
Bad Debts	2,800,000 x 0.01	280,000
Wages & Salaries		156,000
Overhead Expenses		80,000
Selling & Distribution		450,000
Profit		56,000