Exercise 20-33A Merchandising: Budgeted balance sheet LO P3

The following information is available for Zetrov Company:

1. The cash budget for March shows an ending bank loan of $20,000 and an ending cash balance of $75,000.
2. The sales budget for March indicates sales of $140,000. Accounts receivable are expected to be 60% of the current-month sales.
3. The merchandise purchases budget indicates that $91,000 in merchandise will be purchased on account in March. Purchases on account are paid 100% in the month following the purchase. Ending inventory for March is predicted to be 800 units at a cost of $35 each.
4. The budgeted income statement for March shows net income of $50,000. Depreciation expense of $3,000 and $28,000 in income tax expense were used in computing net income for March. Accrued taxes will be paid in April.
5. The balance sheet for February shows equipment of $82,000 with accumulated depreciation of $32,000, common stock of $35,000, and ending retained earnings of $10,000. There are no changes budgeted in the equipment or common stock accounts.

Prepare a budgeted balance sheet at the end of March.