Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Could I get help with this please? The numbers I have in I'm not sure if they are right as well. Thanks. (Also the pictures
Could I get help with this please? The numbers I have in I'm not sure if they are right as well. Thanks.
(Also the pictures uploaded in the opposite order.)
January February March Loan Balance: Beginning New loan Repayment Ending balance PLIES GRCC Corporation Budgeted Income Statement For the Three Months ended March 31 Sales Cost of goods sold Gross profil Operating expenses: Selling and administrative expenses Depreciation expense Operating income Interest expense Income before taxes Income tax expense Net income February 540 Merchandise purchases budget: Desired ending inventory Current month's sales in units Total available Less: beginning inventory Current month's purchases in units Cost per unit Current month's purchases January 450 2000 2450 600 1950 Lo 18500 1500 2040 450 1540 10 1540D March 420 1800 [2220 540 1680 16800 January February March Cash disbursements for merchandise: % of current month purchases % of prior month purchases Total January February March Cash disbursements from selling/admin exp: Commissions Freight Office salaries Rent Total January February March Cash Budget: Beginning balance Cash receipts Total available Payments for purchases Selling and admin. Expense Interest expense Total cash disbursements Preliminary cash balance New loan Loan repayment Ending balance Nam $20 a unit. Budget sales are 40% cash and 60% on credit. All credit sales are collected in the month following is preparing its master budget for the quarter ending March 31. It sells a single product for the sales. Budgeted sales for the next four months follow: January February March April Sales in Units 2,000 1,500 1,800 1,400 At December 31, the balance in accounts receivable is $20,000, which represents the uncollected portion of December sales. The company desires merchandise inventory equal to 30% of the next month's sales in units. The December 31 balance of merchandise inventory is 500 units, and inventory cost is $10 per unit. Forty percent of the purchases are paid in the month of purchase and 60% paid in the following month. At December 31, the balance of Accounts Payable is $6,000, which represents the unpaid portion of December's purchases. Operating expenses are paid in the month incurred and consist of: Sales commissions (10% of sales) Freight (2% of sales) Office salaries ($3,000 per month) Rent ($4,000 per month) Depreciation expense is $3,000 per month. The income tax rate is 21%, and income taxes will be paid on April 1. A minimum cash balance of $10,000 is required, and the cash balance December 31 is $10,500. Loans are obtained at the end of a month in which a cash shortage occurs. Interest is 3% per month, based on the beginning of the month loan balance, and must be paid each month. If an excess of cash exists, loan repayments are made at the end of the month. At December 31, the loan balance is $0. Prepare the master budget (round all dollar amounts to the nearest whole dollar) for each of the months of January, February, and March below: January February March Sales Budget: Sales in Units Price per unit Dollar sales January Cash Receipts Table: February March Cash sales Credit sales from prior month Total cash receiptsStep 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