Exercise 9-29 Budgeted Financial Statements; Retailer (LO 9-3, 9-5)

Exercise 9-29 Budgeted Financial Statements; Retaller (LO 9-3, 9-5) Handy Hardware is a retail hardware store. Information about the store's operations follows. November 20x1 sales amounted to $540,000. Sales are budgeted at $580.000 for December 20x1 and $540,000 for January 20x2. Collections are expected to be 60 percent in the month of sale and 38 percent in the month following the sale. Two percent of sales are expected to be uncollectible. Bad debts expense is recognized monthly. The store's gross margin Is 25 percent of its sales revenue. A total of 70 percent of the merchandise for resale is purchased in the month prior to the month of sale, and 30 percent is purchased in the month of sale. Payment for merchandise is made in the month following the purchase. Other monthly expenses pald In cash amount to $46,600. Annual depreciation is $474.000. The company's balance sheet as of November 30, 20x1, is as follows: HANDY HARDWARE, INC. Balance Sheet November 30, 20x1 Assets Cash $ 58,eee Accounts receivable (net of $8,400 allowance for uncollectible accounts) 166,eee Inventory 429,800 Property, plant, and equipment (net of $1,320,082 accumulated depreciation) 1,864, eee Total assets $2.5es.ee Liabilities and Stockholders' Equity Accounts payable $ 426,600 Conmon stock 1.732.ee Retained earnings 352,eee Total liabilities and owner's equity $2,5es.eee Required: 1. Compute the budgeted cash collections for December 20x1. 2 Compute the budgeted Income (loss) before Income taxes for December 20x1. 3. Compute the projected balance in accounts payable on December 31, 20x1. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the budgeted cash collections for December 20x1. Budgeted cash collections Required 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the budgeted income (loss) before income taxes for December 20x1. Budgeted before taxes Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the projected balance in accounts payable on December 31, 20x1. Accounts payable Required 2 Required 3)