Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help with the accounts receivable and accounts payable portion in the balance sheet. Using information from part C and F. Complete this question

I need help with the accounts receivable and accounts payable portion in the balance sheet. Using information from part C and F.
image text in transcribed
image text in transcribed
image text in transcribed
Complete this question by entering your answers In the tabs below. Budgeted balance sheet as of March 31. (Round your final answers to the nearest whole dollar.) DIMSDALE SPORTS COMPANY To prepare a master budget for January. February, and March, use the following information. a. The company's single product is purchased for $20 per unit and resold for $55 per unit The inventory level of 4,750 units on December 31 is more than management's desired level, which is 20% of the next month's budgeted sales units. Budgeted sales are January, 6,500 units; February, 8,500 units; March, 11,500 units; and April, 9,500 units. All sales are on credit. b. Cash receipts from sales are budgeted as follows: January, $227,250; February, $687,898; March, $485,431. c. Cash payments for merchandise purchases are budgeted as follows: January, $60,000; February, $318,800; March, $91,600. d. Sales commissions equal to 20% of sales dollars are paid each month. Sales salaries (excluding commissions) are $7,500 per month. e. General and administrative salaries are $12,000 per month. Maintenance expense equals $1,900 per month and is paid in cash. f. New equipment purchases are budgeted as follows: January, $33,600; February, $93,600; and March, $24,000. Budgeted depreciation expense is January, $6,850; February, $7,825; and March, $8,075. 9. The company budgets a land purchase at the end of March ot a cost of $175,000, which will be paid with cash on the last day of the month. h. The company has an agreement with its bank to obtain additional loans as needed. The interest rate is 1% per month and interest is paid at each month-end based on the beginning-month balance. Partial or full payments on these loans are made on the last day of the month. The company maintains a minimum ending cash balance of $20,000 at the end of each month. 1. The income tax rate for the company is 41%. Income taxes on the first quarter's income will not be paid until April 15

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Japanese Management Accounting A World Class Approach To Profit Management

Authors: Michiharu Sakurai, Yasuhiro Monden

1st Edition

091529950X, 978-0915299508

More Books

Students also viewed these Accounting questions

Question

=+) What is the p-value associated with t-statistic?

Answered: 1 week ago

Question

1. Identify three approaches to culture.

Answered: 1 week ago

Question

3. Identify and describe nine cultural value orientations.

Answered: 1 week ago

Question

4. Describe how cultural values influence communication.

Answered: 1 week ago