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

The following information is available for Zetrov Company:

a. The cash budget for March shows an ending bank loan of $17,000 and an ending cash balance of $70,500.

b. The sales budget for March indicates sales of $134,000. Accounts receivable are expected to be 60% of the current-month sales.

c. The merchandise purchases budget indicates that $90,400 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 740 units at a cost of $35 each.

d. The budgeted income statement for March shows net income of $49,400. Depreciation expense of $2,400 and $27,400 in income tax expense were used in computing net income for March. Accrued taxes will be paid in April.

e. The balance sheet for February shows equipment of $82,600 with accumulated depreciation of $31,400, common stock of $32,000, and ending retained earnings of $9,400. 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
Assets
Cash
Accounts receivable
Merchandise Inventory
Total current assets
Equipment
Accumulated depreciation
Equipment, net		0
Total assets
Liabilities
Accounts payable
Bank loan payable
Income taxes payable
Total liabilities
Equity
Common stock
Retained earnings
Total Stockholders' Equity
Total Liabilities and Equity