Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

David Davis, Bonita & Richard's controller, has received all the budgets prepared by the various operating units and is ready to compile the pro-forma financial

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
David Davis, Bonita & Richard's controller, has received all the budgets prepared by the various operating units and is ready to compile the pro-forma financial statements for the first quarter. The company's balance sheet as of December 31 is as follows: $32,300 22.500 98.400 Cash Finished Goods Inventory Accounts Receivable (net) Raw Materials inventory Property. Plant & Equipment Accumulated Depreciation 49.280 300,000 (75,000) Total Assets $427.480 $17.000 Accounts Payable Income Tax Payable 26,400 Common Stock 100,000 284,080 Retained Earnings Total Liabilities & Owners Equity $427,480 Selected Estimates Quarter Budgeted revenue $ 1,781,900 Selling and administrative expense 427,700 Interest expense 370 Cash 50,380 Cost of Goods Sold 1,387,630 Accounts receivable (net) 174,720 Direct materials 29,160 Finished goods 104,720 Accounts payable 218,700 Notes payable 3,000 Additional Information: Bonita & Richard plans to purchase and pay cash for a piece of land in February at a cost of $ 90,000. Bonita & Richard plans to purchase equipment in March at a cost of $ 30,000. Depreciation for manufacturing overhead $ 42,000 per quarter and for selling and administrative $ 30,000 per month. The company expects a 30% income tax rate, and all quarterly taxes are paid in the first month of the following quarter. Bonita& Hill Balance Sheet March 31 Cash $ Accounts Receivable Finished Goods Inventory Raw Materials Inventory Accumulated Depreciation Property, Plant & Equipment Total Assets $ Accounts Payable $ Retained Earnings

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

Step: 3

blur-text-image

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

Financial Accounting

Authors: Alan Melville

2nd Edition

0273634399, 978-0273634393

More Books

Students also viewed these Accounting questions