This document contains three requirements related to budgeting for a pet store chain called Doggy World and two other companies, Berg Office Supply and Box Printing. It provides budgeted income statements, balance sheets, and cash flow statements for analysis. The regional manager would not investigate the Dayton store based on the report, as there is no actual financial data provided. Preparing budgets allows companies to plan for the future and track performance against goals.

1. 4-1Doggy World operates a chain of pet stores in the Midwest.
The manager of each store reports to the regional manager, who
in turn reports to headquarters in Chicago, Illinois. The actual
and budgetedincome statements for the Dayton store, the Ohio
region (including the Dayton store), and the companyas a whole
(including the Ohio region) for July 2011 are:Requirements1.
Prepare a report for July 2011 that shows the performance of the
Dayton store, the Ohio region, and thecompany as a whole.2.
As the Ohio manager, would you investigate the Dayton store
on the basis of this report? Why or why not?3. Should Doggy
World prepare the master budget? Briefly discuss the benefits
of budgeting. Base yourdiscussion on Doggy World's
performance report.Requirement 1Prepare a report that shows
the performance of the Dayton store, the Ohio region and the
companyas a whole. Begin with the company as a whole.Doggy
WorldResponsibility Accounting Performance ReportJuly
2011CompanywideOperating Income of Regions and
Headquarter's Office ExpenseBudgetActualVariance Favorable
(Unfavorable) Headquarter's office expense- 0 Ohio stores- 0
Stores in other regions- 0Operating income$ - 0$ - 0$ -
0Now prepare the report that show the performance of the Ohio
region.Doggy WorldResponsibility Accounting Performance
ReportJuly 2011OhioOperating Income of Stores and Region
Manager's Office ExpenseBudgetActualVariable Favorable
(Unfavorable) Region manager's office expense- 0 Dayton- 0
Other Ohio stores- 0Operating income$ - 0$ - 0$ - 0Finally,
show the performance of the Dayton store.Doggy
WorldResponsibility Accounting Performance ReportJuly
2011DaytonRevenues and Expenses:BudgetActualVariable
Favorable (Unfavorable)Revenue$ - 0Expenses: Cost of
materials- 0 Salary expense- 0 Depreciation expense- 0
Utilities expense- 0 Rent expense- 0Total expenses-
0Operating income$ - 0$ - 0$ - 0Requirement 2As the Ohio
region manager, would you investigate the Dayton store on the

2. basis of this report? Requirement 3Should Doggy World prepare
the master budget? Briefly discuss the benefits of budgeting.
Base yourdiscussion on Doggy World's performance report.
4-2The budget committee of Berg Office Supply has assembled
the following data. As the business manager, you must prepare
the budgeted income statements for May and June
2011.Requirement1. Prepare Berg's budgeted income
statements for May and June. Show cost of goods
soldcomputations. Requirement 1Before completing the
budgeted income statements, calculate the budgeted cost of
goodssold for May and June using the inventory, purchases, and
cost of goods sold budget form.MayJuneBeginning inventory +
Purchases = Goods available for sale - Ending inventory = Cost
of goods soldNow complete the budgeted income statements for
May and June.Berg Office SupplyBudgeted Income
StatementsMay and June 2011MayJuneSales revenueCost of
goods soldGross profitOperating expenses: Salaries &
commission expense Rent expense Depreciation expense
Insurance expenseOperating incomeIncome tax expenseNet
income
4-3Box Printing of Bloomington has applied for a loan. Bank of
America has requested a budgeted balance sheetat April 30,
2011, and a budgeted statement of cash flows for April. As
Box's controller, you have assembled the following
information:Requirements1. Prepare the budgeted balance sheet
for The Box Printing at April 30, 2011. Show separate
computations for cash, inventory, and stockholders' equity
balances.2. Prepare the budgeted statement of cash flows for
April.3. Suppose the Box Printing has become aware of more
efficient (and more expensive) equipment thanit budgeted for
purchase in April. What is the total amount of cash available
for equipment purchasesin April, before financing, if the
minimum desired ending cash balance is $21,000? (For this
requirement, disregard the $16,900 initially budgeted for
equipment purchases.)Requirement 1Show separate
computations for cash, inventory, and stockholders' equity

3. balances. sold for May and June using the inventory, purchases,
and cost of goods sold budget form.Use formulas in Excel -
enter cash payments as negative numbers.Cash, at April 30,
2011Beginning balanceCash inflows: Cash sales
CollectionsCash outflows: Payment of March liabilities
Cash purchases Payment for April (credit) purchases
Purchase of equipment Operating expenses paidEnding
balance$ - 0Inventory, at April 30, 2011Beginning
balanceAdd: PurchasesLess: Cost of goods soldEnding balance-
0Stockholders' Equity at April 30, 2011Beginning balanceAdd:
RevenuesLess: ExpensesEnding balance- 0Prepare the budgeted
balance sheet for Box Printing at April 30, 2011. Fill in the
blanksas needed. Box PrintingBudgeted Balance SheetApril 30,
2011AssetsCurrent assets: Cash$ - 0 Accounts receivable
Inventory- 0 Total curent assets$ - 0Plant assets:
Equipment Accumulated depreciaiton- 0 Total assets$ -
0LiabilitiesCurrent liabilities: Accounts payable Accrued
expenses payableTotal liabilities- 0Stockholders' Equity
Stockholders' Equity- 0Total liabilities and stockholders'
equity- 0Requirement 2Box PrintingBudgeted Statement of Cash
FlowsFor the Month Ended April 30, 2011Cash flows from
operating activities: Receipts: Collection from
customers- 0 Total cash receipts$ - 0 Payments
Purchases- 0 Operating expenses- 0 Total cash
payaments- 0Net cash inflow from operating activities- 0Cash
flows from investing activities: Acquisition of equipment- 0
Net cash outflows from investing activities- 0Cash flows from
financing activities- 0Net increase in cash- 0Cash balance, April
1, 2011Cash balance, April 30, 2011$ - 0Requirement 3