Question
Blossom Industries balance sheet at December 31, 2019, is presented below. BLOSSOM INDUSTRIES Balance Sheet December 31, 2019 Assets Current Assets Cash $7,500 Accounts receivable
Blossom Industries balance sheet at December 31, 2019, is presented below.
BLOSSOM INDUSTRIES Balance Sheet December 31, 2019 | ||||||
Assets | ||||||
Current Assets | ||||||
Cash | $7,500 | |||||
Accounts receivable | 73,500 | |||||
Finished goods inventory (1,500 units) | 26,190 | |||||
Total current assets | 107,190 | |||||
Property, Plant, and Equipment | ||||||
Equipment | $40,580 | |||||
Less: Accumulated depreciation | 10,980 | 29,600 | ||||
Total assets | $136,790 | |||||
Liabilities and Stockholders' Equity | ||||||
Liabilities | ||||||
Notes payable | $26,260 | |||||
Accounts payable | 46,550 | |||||
Total liabilities | 72,810 | |||||
Stockholders' Equity | ||||||
Common stock | $38,510 | |||||
Retained earnings | 25,470 | |||||
Total stockholders' equity | 63,980 | |||||
Total liabilities and stockholders' equity | $136,790 |
Budgeted data for the year 2020 include the following.
2020 | ||||
Quarter 4 | Total | |||
Sales budget (8,000 units at $32) | $76,800 | $256,000 | ||
Direct materials used | 14,080 | 62,500 | ||
Direct labor | 12,500 | 50,900 | ||
Manufacturing overhead applied | 10,000 | 48,600 | ||
Selling and administrative expenses | 15,320 | 75,000 |
To meet sales requirements and to have 2,500 units of finished goods on hand at December 31, 2020, the production budget shows 9,000 required units of output. The total unit cost of production is expected to be $18. Blossom uses the first-in, first-out (FIFO) inventory costing method. Interest expense is expected to be $3,500 for the year. Income taxes are expected to be 40% of income before income taxes. In 2020, the company expects to declare and pay an $8,620 cash dividend. The companys cash budget shows an expected cash balance of $5,880 at December 31, 2020. All sales and purchases are on account. It is expected that 60% of quarterly sales are collected in cash within the quarter and the remainder is collected in the following quarter. Direct materials purchased from suppliers are paid 50% in the quarter incurred and the remainder in the following quarter. Purchases in the fourth quarter were the same as the materials used. In 2020, the company expects to purchase additional equipment costing $10,290. $4,474 of depreciation expense on equipment is included in the budget data and split equally between manufacturing overhead and selling and administrative expenses. Blossom expects to pay $8,260 on the outstanding notes payable balance plus all interest due and payable to December 31 (included in interest expense $3,500, above). Accounts payable at December 31, 2020, includes amounts due suppliers (see above) plus other accounts payable relating to manufacturing overhead of $8,260. Unpaid income taxes at December 31 will be $7,770.
I JUST NEED THE LAST ONE!!!!!! PLEASE!!!!
Prepare a budgeted statement of cost of goods sold. BLOSSOM INDUSTRIES Budgeted Cost of Goods Sold For the Year Ending December 31, 2020 26,190 Finished Goods Inventory, 1/1/20 Cost of Goods Manufactured 62,500 50,900 48,600 Direct Materials Used Direct Labor Manufacturing Overhead Applied 162000 Cost of Goods Available For Sale 188190 Finished Goods Inventory, 12/31/20 45000 143190 Cost of Goods Sold Prepare a budgeted multiple-step income statement for 2020. BLOSSOM INDUSTRIES Budgeted Income Statement For the Year Ending December 31, 2020 256,000 Sales Revenue Cost of Goods Sold 143190 Gross Profit 112810 Selling and Administrative Expenses Income from Operations Interest Expense 75,000 37810 3,500 Income before Income Taxes 34310 Income Tax Expense 13724 20586 Net Income/ (Loss) Prepare a retained earnings statement for 2020. (List items that increase retained earnings first.) BLOSSOM INDUSTRIES Budgeted Retained Earnings Statement For the Year Ending December 31, 2020 Retained Earnings, 1/1/20 25,470 AddNet Income/ (Loss) 20586 46056 Less | Dividends 8,620 37436 Retained Earnings, 12/31/20 Click if you would like to Show Work for this question: Open Show Work Prepare a budgeted classified balance sheet at December 31, 2020. (List Current Assets in order of liquidity.) BLOSSOM INDUSTRIES Budgeted Balance Sheet December 31, 2020 Assets Current Assets Cash Accounts Receivable Finished Goods Inventory Total Current Assets Property, Plant and Equipment Equipment Less V Accumulated Depreciation Total Assets Liabilities and Stockholders' Equity Current Liabilities Accounts Payable Income Taxes Payable Total Current Liabilities Notes Payable Total Liabilities Stockholders' Equity Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' EquityStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started