Hank has asked HQ Company for a budgeted balance sheet ended December 31, 2020.

The cash budget shows an expected cash balance of $18,750 at December 31, 2020

The 2020 sales budget shows total annual sales of $200,000.

All sales are made on account and accounts receivable at December 31, 2020 are expected to be 10% of annual sales.

The merchandise purchases budget shows: budgeted cost of goods sold of $150,000 and ending merchandise inventory of $23,750.

20% of the ending inventory is expected to have not yet been paid at December 31, 2020.

The December 31, 2019 balance sheet includes the following balances: Equipment: $73,500 Accumulated Depreciation: $34,250 Common Stock: $67,500 Retained Earnings: $24,250

The budgeted income statement for 2020 includes the following: Depreciation of Equipment: $3,750 Federal Income Tax: $5,250 Net Income: $12,250

The Net Income Taxes will not be paid until 2020. In 2020, management does not expect to purchase additional equipment or to declare any dividends. It does expect to pay all operating expenses, other than depreciation, in cash.

Prepare an budgeted balance sheet

PLEASE ANSWERS A-X THEY ARE IN THE CORRECT SPOT. PLEASE NOTE A-C is the HEADING. D-O is ASSESTS and P-X IS LIABILITIES AND STOCKHOLDERS EQUITY

 

A B ASSETS $E F $K LESS: L N TOTAL ASSESTS $0 Liabilities and Stockholders' Equity P V W Total Liabilities and Stockholders' $ X Equity