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

The following information is available for Zetrov Company:

The cash budget for March shows an ending bank loan of $15,000 and an ending cash balance of $61,000.

The sales budget for March indicates sales of $130,000. Accounts receivable are expected to be 65% of the current-month sales.

The merchandise purchases budget indicates that $90,000 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 700 units at a cost of $35 each.

The budgeted income statement for March shows net income of $49,000. Depreciation expense of $2,000 and $27,000 in income tax expense were used in computing net income for March. Accrued taxes will be paid in April.

The balance sheet for February shows equipment of $83,000 with accumulated depreciation of $31,000, common stock of $30,000, and ending retained earnings of $9,000. There are no changes budgeted in the equipment or common stock accounts.

Prepare a budgeted balance sheet at the end of March.

ZETROV COMPANY
Budgeted Balance Sheet
As of March 31
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