Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assots Cash Accounts receivable Inventory Balance Sheet March 31 Plant and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock

Assots Cash Accounts receivable Inventory Balance Sheet March 31 Plant and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings. $ 81,000 132,000 56,250 214,000 $ 483,250 $ 75,000 346,000 62,250 Total liabilities and stockholders' equity $ 483,250 TES-540 accountants have made the following estimates: 1. Sales for April, May, June, and July will be $250,000, $270,000, $260,000, and $280,000, respectively. 2. All sales are on credit. Each month's credit sales are collected 35% in the month of sale and 65% in the month following the sale. All of the accounts receivable at March 31 will be collected in April. 3. Each month's ending inventory must equal 30% of next month's cost of goods sold. The cost of goods sold is 75% of sales. The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase. All of the accounts payable at March 31 are related to previous merchandise purchases and will be paid in April. 4. Monthly selling and administrative expenses are always $46,000. Each month $5,000 of this total amount is depreciation expense and the remaining $41,000 is spent for expenses that are paid in the month they are incurred. 5. The company will not borrow money or pay or declare dividends during the 2nd quarter. The company will not issue any common stock or repurchase its own stock during the 2nd quarter. How much is the company's expected total Net Operating Income for the 2nd quarter ending on June 30

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_2

Step: 3

blur-text-image_3

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

More Books

Students also viewed these Accounting questions

Question

What would you do to help someone engage in reflection?

Answered: 1 week ago