Chapter #8 - Quiz 0 Saved 3. As of December 31 (the end or the prior quarter), the company's general ledger showed the tollowrng account balances: Debits Credits Cash $ 45 , 000 Accounts receivable 2 D4 , 000 Inventory 58 , 500 Buildings and equipment (net) 355 , 000 Account-.5 payable S as, 625 }_fsmppe Common stock 500, 000 Retained earnings 7 5 , 875 S $ 662,500 eEook 3763 55.037 f k , be Actual sales for December and budgeted sales for the next four months are as follows: , December(actua1) $ 255,000 ) January 5 390,000 I February 5 587,000 5 March 5 301,000 April S 198,000 .1 c. 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 d. The company's gross margin is 40% of sales. (In other words, cost of goods sold is 60% ofsales.) e. Monthly expenses are budgeted as follows: salaries and wages, $20,000 per month: advertising, $60,000 per month; shipping, 5% f of sales; other expenses, 3% of sales. Depreciation, including depreciation on new assets acquired during the quarter, will be $42,900 for the quarter. f. Each month's ending inventory should equal 25% of the following month's cost of goods sold. 9. One-half of a month's inventory purchases is paid for in the month of purchase; the other half is paid in the following month. h. During February, the company will purchase a new copy machine for $1,500 cash, Durin 9 March, other equipment will be purchased for cash at a cost of $72,500. 1. During January, the company will declare and pay $45,000 in cash dlvldends. j. Management wants to maintain a minimum cash balance of $30,000, The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginnlng of each month The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded, The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter. n 1. Schedule of expected cash collections: 2-a. Merchandise purchases budget: 2-b. Schedule of expected cash disbursements for merchandise purchases: 3. Cash budget: Skipped 4. Prepare an absorption costing income statement for the quarter ending March 31. 5. Prepare a balance sheet as of March 31. eBook Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3 Required 4 Required 5 Complete the Schedule of expected cash collections: Schedule of Expected Cash Collections January February March Quarter Cash sales $ 78,000 $ 78,000 Credit sales 204,000 204,000 Total collections $ 282,000 $ o $ 0 $ 282,000 Required 2A > Mc Graw Prev 1 of 1 Next > Hill MacBook2-b. Schedule of expected cash disbursements for merchandise purchases: Skipped 3. Cash budget: 4. Prepare an absorption costing income statement for the quarter ending March 31. 5. Prepare a balance sheet as of March 31. eBook Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3 Required 4 Required 5 Complete the merchandise purchases budget: Merchandise Purchases Budget January February March Quarter Budgeted cost of goods sold $234,000 $ 352,200 Add desired ending inventory 88,050+ Total needs 322,050 352,200 0 0 Less beginning inventory 58,500 Required purchases $ 263,550 $ 352,200 $ 0 $ 0 $390,000 sales x 60% cost ratio = $234,000. +$352,200 x 25% = $88,050. Mc 1 of 1 Next Graw Prev Hill MacBook AllRequired: Using the data above, complete the following statements and schedules for the first quarter: 1. Schedule of expected cash collections: 2-a. Merchandise purchases budget: 2-b. Schedule of expected cash disbursements for merchandise purchases: Skipped 3. Cash budget: 4. Prepare an absorption costing income statement for the quarter ending March 31. 5. Prepare a balance sheet as of March 31. eBook Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required Required 3 Required 4 Required 5 Complete the schedule of expected cash disbursements for merchandise purchases. Schedule of Expected Cash Disbursements for Merchandise Purchases January February March Quarter December purchases $ 86,625 $ 86,625 January purchases 131,775 131,775 263,550 February purchases March purchases 0 Total cash disbursements for purchases $ 218,400 $ 131,775 $ 0 $ 350,175 Mc Prey 1 of 1 Next Graw HillChapter #8 - Quiz i Saved Help Says Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3 Required 4 Required 5 Complete the cash budget. (Cash deficiency, repayments and interest should be indicated by a minus sign.) Skipped Hillyard Company Cash Budget eBook January February March Quarter Beginning cash balance $ 45,000 Add collections from customers 282,900 Total cash available 327,000 0 Less cash disbursements: Inventory purchases 218,400 Selling and administrative expenses 111,200 Equipment purchases Cash dividends 45,000 Total cash disbursements 374,600 o 0 Excess (deficiency) of cash 47,600) 0 Financing: Borrowings Repayments Interest Total financing 0 0 o o Ending cash balance $ (47,600) $ o $ o $ Required 2B Required 4 > Mc Graw Mc Graw Prev 1 of 1 Next > MacBook Air esc 20 F1 888 E2 DII F3 F4 F5 F6 F7 FB @ # % & 2 3 4 5 6 V 8 Q W E R T Y Ufab M Gmail 9 Maps News Translate Youtube h Hull Chapter #8 - Quiz i Saved Required 1 Required 2A Required 2B Required 3 Required 4 Required 5 Prepare a balance sheet as of March 31. Hillyard Company Balance Sheet Skipped March 31 Assets Current assets: eBook Total current assets 0 Total assets $ 0 Liabilities and Stockholders' Equity Current liabilities: Stockholders' equity: O Total liabilities and stockholders' equity $ O Mc Graw Hill Prev 1 of 1 Next > MacBook Air 20 Ba8 F1 F2 DO F3 F4 F5 F7 & W# 2 4 5 6 7 8 Q W E R Y U