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Clipboard Office Supply s March 3 1 , 2 0 2 4 , budgeted balance sheet follows: Thumbtack Office Supply Budgeted Balance Sheet March 3
Clipboard Office Supplys March budgeted balance sheet follows: Thumbtack Office Supply Budgeted Balance Sheet March Assets Liabilities Current assets: Current liabilities: Cash $ Accounts payable $ Accounts receivable Salary and commissions payable Inventory Total liabilities $ Prepaid insurance Total current assets $ Stockholders Equity Plant assets: Common stock Equipment and fixtures Retained earnings Less: Accumulated depreciation Total stockholders equity $ Total plant assets $ Total assets $ Total liabilities and stockholders equity $ The budget committee of Thumbtack Office Supply has assembled the following data. a Sales in April were $ You forecast that monthly sales will increase over Aprils sales in May. Junes sales will increase over Aprils sales. Julys sales will increase over Aprils sales. Collections are in the month of sale and in the month following sale. b Thumbtack maintains inventory of $ plus of the COGS budgeted for the following month. COGS of sales revenue. Purchases are paid in the month of purchase and in the month following the purchase. c Monthly salaries amount to $ Sales commissions equal of sales for that month. Salaries and commissions are paid in the month incurred and in the following month. d Other monthly expenses are as follows: Rent expense $ paid as incurred Depreciation expense $ Insurance expense $ expiration of prepaid amount Income tax of operating income, paid as incurred Required: Prepare Clipboards sales budget for April and May, Thumbtack Office Supply Sales Budget April May April May Sales Prepare Clipboards inventory, purchases, and cost of goods sold budget for April and May. Thumbtack Office Supply Inventory, Purchases, and Cost of Goods Sold Budget April May April May Cost of goods sold a Desired ending inventory Inventory required Beginning inventory Purchases Prepare Clipboards operating expenses budget for April and May. Thumbtack Office Supply Operating Expenses Budget April May April May Variable operating expenses: Commissions expense a Fixed operating expenses: Salaries expense Rent expense Depreciation expense Insurance expense Total fixed operating expenses Total operating expenses Prepare Clipboards budgeted income statement for April and May. Thumbtack Office Supply Budgeted Income Statements Months Ending April May April May Sales revenue Cost of goods sold Gross profit Variable operating expenses: Commissions expense Contribution margin Fixed operating expenses: Salaries expense Rent expense Depreciation expense Insurance expense Total fixed operating expenses Operating income Income tax expense Net income Prepare the schedule of budgeted cash collections from customers for April and May. Thumbtack Office Supply Budgeted Cash Collections from Customers April May April May Current month sales, Prior month sales, Total cash collections Prepare the schedule of budgeted cash payments for purchases for April and May. Thumbtack Office Supply Budgeted Cash Payments for Purchases April May April May of last months purchases of current months purchases Total payments for purchases Prepare the schedule of budgeted cash payments for operating expenses for April and May. Thumbtack Office Supply Budgeted Cash Payments for Operating Expenses April May April May Variable operating expenses: of last months commissions expense of current months commissions expense Total payments for variable operating expenses Fixed operating expenses: of last months salaries expense of current months salaries expense Rent expense Total payments for fixed operating expenses Total payments for operating expenses Prepare the cash budget for April and May. Assume no financing took place. Thumbtack Office Supply Cash Budget April May April May Beginning cash balance Cash collections from customers Total cash available Payments: Purchases of inventory Operating expense Payments of income taxes Total cash payments Ending cash balance
Clipboard Office Supplys March budgeted balance sheet follows:
Thumbtack Office Supply
Budgeted Balance Sheet
March
Assets
Liabilities
Current assets:
Current liabilities:
Cash
$
Accounts payable
$
Accounts receivable
Salary and commissions payable
Inventory
Total liabilities
$
Prepaid insurance
Total current assets
$
Stockholders Equity
Plant assets:
Common stock
Equipment and fixtures
Retained earnings
Less: Accumulated depreciation
Total stockholders equity
$
Total plant assets
$
Total assets
$
Total liabilities and stockholders equity
$
The budget committee of Thumbtack Office Supply has assembled the following data.
a Sales in April were $ You forecast that monthly sales will increase over Aprils sales in May. Junes sales will increase over Aprils sales. Julys sales will increase over Aprils sales. Collections are in the month of sale and in the month following sale.
b Thumbtack maintains inventory of $ plus of the COGS budgeted for the following month. COGS of sales revenue. Purchases are paid in the month of purchase and in the month following the purchase.
c Monthly salaries amount to $ Sales commissions equal of sales for that month. Salaries and commissions are paid in the month incurred and in the following month.
d Other monthly expenses are as follows:
Rent expense $ paid as incurred
Depreciation expense $
Insurance expense $ expiration of prepaid amount
Income tax of operating income, paid as incurred
Required:
Prepare Clipboards sales budget for April and May,
Thumbtack Office Supply
Sales Budget
April May
April
May
Sales
Prepare Clipboards inventory, purchases, and cost of goods sold budget for April and May.
Thumbtack Office Supply
Inventory, Purchases, and Cost of Goods Sold Budget
April May
April
May
Cost of goods sold a
Desired ending inventory
Inventory required
Beginning inventory
Purchases
Prepare Clipboards operating expenses budget for April and May.
Thumbtack Office Supply
Operating Expenses Budget
April May
April
May
Variable operating expenses:
Commissions expense a
Fixed operating expenses:
Salaries expense
Rent expense
Depreciation expense
Insurance expense
Total fixed operating expenses
Total operating expenses
Prepare Clipboards budgeted income statement for April and May.
Thumbtack Office Supply
Budgeted Income Statements
Months Ending April May
April
May
Sales revenue
Cost of goods sold
Gross profit
Variable operating expenses:
Commissions expense
Contribution margin
Fixed operating expenses:
Salaries expense
Rent expense
Depreciation expense
Insurance expense
Total fixed operating expenses
Operating income
Income tax expense
Net income
Prepare the schedule of budgeted cash collections from customers for April and May.
Thumbtack Office Supply
Budgeted Cash Collections from Customers
April May
April
May
Current month sales,
Prior month sales,
Total cash collections
Prepare the schedule of budgeted cash payments for purchases for April and May.
Thumbtack Office Supply
Budgeted Cash Payments for Purchases
April May
April
May
of last months purchases
of current months purchases
Total payments for purchases
Prepare the schedule of budgeted cash payments for operating expenses for April and May.
Thumbtack Office Supply
Budgeted Cash Payments for Operating Expenses
April May
April
May
Variable operating expenses:
of last months commissions expense
of current months commissions expense
Total payments for variable operating expenses
Fixed operating expenses:
of last months salaries expense
of current months salaries expense
Rent expense
Total payments for fixed operating expenses
Total payments for operating expenses
Prepare the cash budget for April and May. Assume no financing took place.
Thumbtack Office Supply
Cash Budget
April May
April
May
Beginning cash balance
Cash collections from customers
Total cash available
Payments:
Purchases of inventory
Operating expense
Payments of income taxes
Total cash payments
Ending cash balance
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Fundamental Accounting Principles
Authors: John Wild, Ken Shaw, Barbara Chiappett
23rd edition
1259536351, 978-1259536359
