Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

- 4 Deacon Company is a merchandising company that is preparing a budget for the three-month period ended June 30th. The following Information is available

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
- 4 Deacon Company is a merchandising company that is preparing a budget for the three-month period ended June 30th. The following Information is available 10 points Deacon Company Balance Sheet March 31 Assets Cash Accounts receivable Inventory buildings and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders equity 59,60 49,200 56,00 172.000 $ 30.000 $ 145,000 70,000 122,600 $30,000 Budgeted Income Statements April Sales 5156,000 Cost of goods sold 93.690 Gross margin 62,00 Selling and administrative expenses Het operating income 5.43,700 $10,000 9660 66,400 20200 5.46,200 June $185,000 1,500 14,40 $ 51,203 4 Budgeting Assumptions: 10 a 60% of sales are cash sales and 40% of sales are credit sales. Twenty percent of all credit sales are collected in the month of sale and the remaining 80% are collected in the month subsequent to the sale b. Budgeted sales for July are $196,000 c. 10% of merchandise inventory purchases are paid in cash at the time of the purchase. The remaining 90% of purchases are credit purchases. All purchases on credit are paid in the month subsequent to the purchase. The accounts payable at March 31 will be paid in April d. Each month's ending merchandise inventory should equal $10,000 plus 50% of the next month's cost of goods sold e Depreciation expense is $2.000 per month. All other selling and administrative expenses are paid in full in the month the expense is incurred Required: 1. Calculate the expected cash collections for April May, and June 2. Calculate the budgeted merchandise purchases for April May, and June 3. Calculate the expected cash disbursements for merchandise purchases for April May, and June 4. Prepare a budgeted balance sheet at June 30th (Hint You need to calculate the cash paid for selling and administrative expenses during April, May and June to determine the cash balance in your June 30th balance sheet) Complete this question by entering your answers in the tabs below. is incurred 4 10 DOS Required: 1 Calculate the expected cash collections for April, May, and June 2 Calculate the budgeted merchandise purchases for April, May, and June 3. Calculate the expected cash disbursements for merchandise purchases for April, May, and June 4. Prepare a budgeted balance sheet at June 30th. (Hint: You need to calculate the cash paid for selling and administrative expenses during April, May, and June to determine the cash balance in your June 30th balance sheet) Complete this question by entering your answers in the tabs below. Required 4 Required 1 Required 2 Required 3 Calculate the expected cash collections for April, May, and June May June Outer April Total cash collections Required 2 > Required: 1 Calculate the expected cash collections for April, May, and June 2 Calculate the budgeted merchandise purchases for April May, and June. 3. Calculate the expected cash disbursements for merchandise purchases for April, May, and June. 4. Prepare a budgeted balance sheet at June 30th (Hint: You need to calculate the cash paid for selling and admi during April, May, and June to determine the cash balance in your June 30th balance sheet) Complete this question by entering your answers in the tabs below. Required 3 Required 4 Required 1 Required 2 Calculate the budgeted merchandise purchases for April, May, and June. Total April May June Budgeted merchandise purchases 11 4/A is incurred Required: 1. Calculate the expected cash collections for April, May, and June. 2. Calculate the budgeted merchandise purchases for April, May, and June 3. Calculate the expected cash disbursements for merchandise purchases for April, May, and June 4. Prepare a budgeted balance sheet at June 30th (Hint You need to calculate the cash paid for selling and admir during April, May, and June to determine the cash balance in your June 30th balance sheet) Complete this question by entering your answers in the tabs below. Required 2 Required 3 Required 4 Required 1 Calculate the expected cash disbursements for merchandise purchases for April, May, and June. June Quarter April May Budgeted cash disbursements for merchandise purchases Required 2 Required > 4 Prepare a budgeted balance sheet at June 30th. (Hint: You net to calculate the cash paid for selling and administrative expenses during April, May, and June to determine the cash balance in your June 30th balance sheet.) 10 points Deacon Company Balance Sheet June 30 Assets Reference Total assets Liabilities and Stockholders' Equity Total liabilities and stockholders' equity

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Wiley Federal Government Auditing Laws Regulations Standards And Practices

Authors: Edward F. Kearney, Roldan Fernandez, Jeffrey W. Green, David M. Zavada

2nd Edition

1118555856, 978-1118555859

Students also viewed these Accounting questions

Question

=+(16.32) 81(w) for w A and 0 Answered: 1 week ago

Answered: 1 week ago