Been working on this for a while and need some help here. Would be greatly appre
ID: 2371920 • Letter: B
Question
Been working on this for a while and need some help here. Would be greatly appreciated. 10 points for more detailed response
May 31
Assets:
Cash-10350
Account Recievable- 69000
Inventory-34500
Building & Equipment 576150
Total Assets--690000
Liabilities / Stockholder Equity
Account Payable-82800
Note Payable- 15180
Capital Stock- 509220
Retired Earnings- 82800
Total Liability/Stockholder Equity --690000
The company is in the process of preparing a budget for June and has assembled the following data:
a.
Sales are budgeted at $265,000 for June. Of these sales, $75,000 will be for cash; the remainder will be credit sales. One-half of a month’s credit sales are collected in the month the sales are made, and the remainder is collected the following month. All of the May 31 accounts receivable will be collected in June.
Purchases of inventory are expected to total $196,000 during June. These purchases will all be on account. Forty percent of all inventory purchases are paid for in the month of purchase; the remainder are paid in the following month. All of the May 31 accounts payable to suppliers will be paid during June.
Selling and administrative expenses for June are budgeted at $33,000, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $2,000 for the month.
The note payable on the May 31 balance sheet will be paid during June. The company’s interest expense for June (on all borrowing) will be $700, which will be paid in cash.
During June, the company will borrow $21,000 from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year.
1a
Schedule of Expected Cash Collection
Cash Sales-June = 75000 (got this)
Collection on accounts receivable
--May 31 Balance = 69000 (got this)
--June = 95000
Total Cash Receipts = 239000
Schedule of Expected Cash Disbursements
-May 31 accounts payable balance = 82800
-June purchase = 78400
Total Cash Payments = 161200
1b Prepare Cash Budget for June
*I got all the above calculations and am currently stuck on 2 & 3*
2. Budgeted Income Statement for June
Sales = 265000
Cost of Good SOld:
Beginning Inventory = 34500
Purchases=?
Goods available for sale=?
Ending Inventory=?
Cost of Goods Sold=?
Gross Margin=?
Selling and Admin Exp = ?
Net Operating Income (loss) =?
Interest Expense =?
Net income =?
3. Prepare Budget Balance Sheet as of June 30
Assets:
Cash =?
Accounts Receivable=?
Inventory=?
Building Equipment, net of depreciation=?
Total Assets=?
Liabilities and Stockholder Equity
Account Payable=?
Note Payable=?
Capital Stock=?
Retained Earnings=?
Total Liabilities and equity=?
I will eventually figure this out, but any help to speed up the process will be greatly appreciated.
Thanks
Purchases of inventory are expected to total $196,000 during June. These purchases will all be on account. Forty percent of all inventory purchases are paid for in the month of purchase; the remainder are paid in the following month. All of the May 31 accounts payable to suppliers will be paid during June.
d.
Selling and administrative expenses for June are budgeted at $33,000, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $2,000 for the month.
The note payable on the May 31 balance sheet will be paid during June. The company’s interest expense for June (on all borrowing) will be $700, which will be paid in cash.
g.
During June, the company will borrow $21,000 from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year.
Explanation / Answer
www.uwlax.edu/faculty/klyons/docs/Budgeting example.doc
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.