The following information is available for Zetrov Company: The cash budget for M
ID: 2478212 • Letter: T
Question
The following information is available for Zetrov Company: The cash budget for March shows an ending bank loan of dollar13.000 and an ending cash balance of dollar 51.900. The sales budget for March indicates sales of dollar 126.000. Accounts receivable are expected to be 70% of thecurrent-month sales. The merchandise purchases budget indicates that dollar 89.600 in merchandise will be purchased on account in March. Purchases on account are paid 100% in the month following the purchase. Ending inventory for March is predicted to be 660 units at a cost of dollar 35 each. The budgeted income statement for March shows net income of dollar 48,600. Depreciation expense of dollar 1.600 and dollar 26.600 in income tax expense were used in computing net income for March. Accrued taxes will be paid in April. The balance sheet for February shows eq u ipment of dollar 83,400 with accumulated depreciation of dollar 30.600. common stock of dollar 28.000. and ending retained earn ings of dollar 8.600. There are no changes budgeted in the equipment or common stock accounts. Prepare a budgeted balance sheet for March.Explanation / Answer
Zetrov Company Budgeted Balance Sheet March,31 CURRENT ASSETS ($) Cash 51,900 Accounts Receivable 88,200 Inventory 23,100 Total current Assets 1,63,200 Plant and Equipment Equipment 83,400 Less : Accumulated Depreciation 32,200 Net Assets 51,200 Total Assets 2,14,400 CURRENT LIABILITIES Bank Loan 13,000 Acconts payable 89,600 Income Tax Liabilities 26,600 Total current Liability 129,200 Stockholder's Equity Common stock 28,000 Retained Earnings 57,200 Total Stockholde's Equity 85,200 Total Liability 2,14,400
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