Question
5. Budgeted income statement, 20Y2 (6 months) Sales 2,700,000 Sales budget Cost of goods sold 1,620,000 Purchases budget Gross margin 1,080,000 Selling and administrative expenses
5. Budgeted income statement, 20Y2 (6 months) |
| |
Sales | 2,700,000 | Sales budget |
Cost of goods sold | 1,620,000 | Purchases budget |
Gross margin | 1,080,000 |
|
Selling and administrative expenses | 555,000 | S&A expense budget |
Operating income | 525,000 |
|
Interest expense | n.a. |
|
Income tax expense | 130,000 | Cash budget |
Net income | 395,000 |
|
6. Budgeted balance sheet, June 30, 20Y2 |
| |
Assets |
| |
Cash | 315,400 | Cash budget |
Accounts receivable | 400,000 | Sales budget |
Inventory | 156,000 | Purchases budget |
Prepaid insurance | 18000 | Jan 1 balance less insurance expense |
PP&E, net of depreciation | 90000 | Jan 1 balance plus acquisitions less depreciation |
Total assets | 979,400 |
|
I need help with the chart below
Liabilities and Stockholders Equity |
| |
Accounts payable |
| Purchases budget |
Common stock |
| Jan 1 balance |
Retained earnings |
| Jan 1 balance plus net income |
Total liabilities and stockholders equity |
|
|
7. Budgeted statement of cash flows, 20Y2 (6 months) |
| |
Cash provided by operating activities |
|
|
Net income |
| Income statement |
+ Depreciation |
| S&A expenses budget |
Increase in accounts receivable |
| Comparative balance sheets |
Increase in inventory |
| Comparative balance sheets |
+ Decrease in prepaid insurance |
| Comparative balance sheets |
+ Increase in accounts payable |
| Comparative balance sheets |
Total |
|
|
Cash used in investing activities |
|
|
Equipment purchases |
| Cash budget |
Cash used in financing activities |
|
|
Dividends paid |
| Cash budget |
Increase in cash balance |
|
|
Check figures:
Total budgeted sales revenue is $2,700,000
Total budgeted cash collections are $2,604,000
Total budgeted inventory purchases are $1,656,000
Budgeted cash payments for inventory purchases are $1,605,600
Budgeted cash balance on June 30 is $315,400
Budgeted net income is $395,000
Budgeted total assets on June 30 is $1,775,400
Cash provided by operating activities is $391,400
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