4 Tue 2:52 PM Wtor 8 S U N sert Draw Design Layout References Times New... 12 - AAA EWCHAPTER SEVEN MASTER BUDGET PROBLEM retrype 3 Mailings Review View ! A Share con MASTER BUDGET PROBLEM A comprehensive budget problem for a retailer follows. This budget has a value of 150 points. A breakdown of those points is attached to the problem. October 24 (M/W classes: October 25 T/T THIS PROBLEM IS DUE classes A deduction of 15 points per day will be taken for each day the project is late. ABC Company, a retailer, prepares its master budget on a quarterly basis. The following data has been assembled to assist in preparation of the master for the first quarter. a. As of December 31 (the end of the prior quarter), the company's general ledger showed the following account balances. ASSETS LIABILITIES AND EQUITY Cash $ 47,000 Accounts Receivable 224,000 Inventory 60.000 Buildings and Equipment (net of depreciation) 370,000 Accounts Payable Capital Stock Retained Earnings $ 93,000 500,000 109,000 TOTAL ASSETS $701,000 TOTAL LIABILITIES AND EQUITY $701,000 b. dual sales for December and budgeted sales for the next four months are as Engured Suter Focus D E 10250 words MacBook Pro Review View Share Draw Design Layout References mes Now.. 12. - A A A A IU X X A-DA Malings E E Z A J Styles A Style Actual sales for December and budgeted sales for the next four months are as b. follows: December (actual) January February March $280,000 500,000 700,000 400,000 300,000 April Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month following sale. The accounts receivable at December 31 are a result of December credit sales. The Company's gross profit rate is 40% of sales. Monthly expenses are budgeted as follows: salaries and wages, $27,000 per month; advertising, S70,000 per month; shipping, 5% of sales; depreciation, $14,000 per month; other expenses, 3% of sales. MacBook Pro Delete E L - w U 12 - A A A A X X AD-A A Styles portes Styles Styles - Dictate a Seatty At the end of each month, inventory is to be on hand equal to 25% of the following month's sales needs, stated at cost. One-half of a month's inventory purchases is paid for in the month of purchase; the other half is paid for in the following month. During February, the company will purchase a new copy machine for $1,700 cash. During March, other equipment will be purchased for cash at a cost of $84,500. During January, the company will declare and pay $45,000 in cash dividends. The company must maintain a minimum cash balance of $30,000. An open line of credit is available at a local bank for any borrowing that may be needed during the quarter. All borrowing is done at the beginning of the month and all repayments are made at the end of a month. Borrowings and repayments of principal must be in multiples of $1,000. Interest is paid only at the time of payment of principal. The annual interest rate is 12%. REQUIRED: Using the above data, complete the following: 1. Schedule of Expected Cash Collections 2. Inventory Purchases Budget 3. Schedule of Cash Disbursements for Purchases 4. Schedule of Cash Disbursements for Expenses 5. Cash Budget 6. Income Statement for quarter ending March 31 7. Balance Sheet as of March 31 50 words English (UK ) MacBook Pro