ABC ENTERPRISES

The management of ABC Enterprises has compiled the following data for next year

to use in preparing its budgeted balance sheet:

Cash ?

Accounts receivable $27,000

Inventory 32,000

Equipment 24,500

Accumulated amortization 6,500

Accounts payable 13,000

Common shares 40,000

Retained earnings ?

The beginning balance of retained earnings was $11,000, net income is budgeted to be $26,000, and dividends are budgeted to be $5,000.

Prepare the company's budgeted balance sheet.

Answer the questions in the test from this problem.