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Kama Bay Outfitters is a retail fishing supply store that uses accrual accounting for its records. Information on the store operations is as follows: 1)The

Kama Bay Outfitters is a retail fishing supply store that uses accrual accounting for its records. Information on the store operations is as follows: 1)The store has budgeted sales at $220,000 for January and $200,000 for February. Given CoVid, their sales are usually much higher. 2)It expects collections to be 60% in the month of sale and 38% in the month following the sale. It expects 2% of sales to be uncollectible. 3)Gross margin is 25% of sales. 4)It purchases a total of 80% of the merchandise for resale in the month before the month of sale and 20% in the month of sale. It makes payments for merchandise in the month after it purchases it. 5)Other expected monthly expenses to be paid in cash amount to $22,600. 6)Annual depreciation is $216,000. The store balance sheet at the close of business on December 31 follows:

Assets

Cash- $44,000

Accounts receivable (net of $4,000 allowance for uncollectible accounts) - 152,000

Inventory - 264,000

Property and equipment (net of $680,000 of accumulated depriciation)- 1740,000

Total ASSETS = $2,200,000

Liabilities and shareholder's Equity

Accounts payable - $324,000

Common share - 1600,000

Retained earning - 276,000

Total liabilities and shareholder's equity - $2,200,000

a. budgeted income statement for January 2021.

b. cash budget for January 2020.

c. budgeted balance sheet as of January 31, 2020.

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