Look at Doc attachment Near the end of 2011, the management of Simid Sports Co , a merchandising company, prepared the following estimated balance sheet for December 31, 2011 SIMID SPORTS COMPANY Estimated Balance Sheet December 31, 2011 Assets Cash $ 35,500 Accounts receivable 520,000 Inventory 150,000 Total current assets 705,500 Equipment $ 536,000 Less accumulated depreciation 67,000 469,000 Total assets $ 1,174,500 Liabilities and Equity Accounts payable $ 355,000 Bank loan payable 14,000 Taxes payable (due 3 15 2012) 90,000 Total liabilities $ 459,000 Common stock 470,000 Retained earnings 245,500 Total stockholders equity 715,500 Total liabilities and equity $ 1,174,500 To prepare a master budget for January, February, and March of 2012, management gathers the following information a Simid Sports single product is purchased for $30 per unit and resold for $57 per unit The expected inventory level of 5,000 units on December 31, 2011, is more than management s desired level for 2012, which is 20 of the next month s expected sales (in units) Expected sales are January, 7,500 units February, 9,250 units March, 10,750 units and April, 9,500 units b Cash sales and credit sales represent 30 and 70 , respectively, of total sales Of the credit sales, 70 is collected in the first month after the month of sale and 30 in the second month after the month of sale For the December 31, 2011, accounts receivable balance, $125,000 is collected in January and the remaining $395,000 is collected in February c Merchandise purchases are paid for as follows 20 in the first month after the month of purchase and 80 in the second month after the month of purchase For the December 31, 2011, accounts payable balance, $80,000 is paid in January and the remaining $275,000 is paid in February d Sales commissions equal to 20 of sales are paid each month Sales salaries (excluding commissions) are $90,000 per year e General and administrative salaries are $132,000 per year Maintenance expense equals $2,000 per month and is paid in cash f Equipment reported in the December 31, 2011, balance sheet was purchased in January 2011 It is being depreciated over eight years under the straight line method with no salvage value The following amounts for new equipment purchases are planned in the coming quarter January, $38,000 February, $97,000 and March, $29,500 This equipment will be depreciated under the straight line method over eight years with no salvage value A full month s depreciation is taken for the month in which equipment is purchased g The company plans to acquire land at the end of March at a cost of $180,000, which will be paid with cash on the last day of the month h Simid Sports has a working arrangement with its bank to obtain additional loans as needed The interest rate is 12 per year, and interest is paid at each month end based on the beginning balance Partial or full payments on these loans can be made on the last day of the month The company has agreed to maintain a minimum ending cash balance of $50,610 in each month i The income tax rate for the company is 30 Income taxes on the first quarter s income will not be paid until April 15 Required Prepare a master budget for each of the first three months of 2012 include the following component budgets 8 1 Monthly sales budgets (Omit the $ sign in your response ) SIMID SPORTS CO Sales Budget January, February, and March 2012 Budgeted Units Budgeted Unit Price Budgeted Total Dollars January 2012 $ $ February 2012 March 2012 Total for the first quarter $ 9 2 Monthly merchandise purchases budgets (Units to be deducted should be indicated with a minus sign Omit the $ signs in your response ) SIMID SPORTS CO Merchandise Purchases Budget January, February, and March 2012 January February March Total $ $ $ $ $ $ $ $ 10 3 Monthly selling expense budgets (Omit the $ signs in your response ) SIMID SPORTS CO Selling Expense Budget January, February, and March 2012 January February March Total $ $ $ $ Total selling expenses $ $ $ $ 11 4 Monthly general and administrative expense budgets (Do not round your intermediate calculations Round your final answers to the nearest whole dollar Omit the $ sign in your response ) SIMID SPORTS CO General and Administrative Expense Budget January, February, and March 2012 January February March Total $ $ $ $ Total expenses $ $ $ $ 12 5 Monthly capital expenditures budgets (Leave no cells blank be certain to enter 0 wherever required Input all amounts as positive values Omit the $ sign in your response ) SIMID SPORTS CO Capital Expenditures Budget January, February, and March 2012 January February March $ $ $ Total $ $ $ 13 6 Monthly cash budgets (Leave no cells blank be certain to enter 0 wherever required Input all amounts as positive values except negative preliminary cash balance and repayment of loan to bank which should be indicated by a minus sign Round your intermediate calculations and final answers to the nearest dollar amount Omit the $ sign in your response ) SIMID SPORTS CO Cash Budget January, February, and March 2012 January February March $ $ $ Total cash available Cash disbursements Total cash disbursements $ $ $ $ $ $ 14 7 Budgeted income statement for the entire first quarter (not for each month) (Round your answers to the nearest dollar amount Input all amounts as positive values Omit the $ sign in your response ) SIMID SPORTS CO Budgeted Income Statement For Three Months Ended March 31, 2012 $ Operating expenses $ $ 15 8 Budgeted balance sheet as of March 31, 2012 (Be sure to list the assets in order of their liquidity Round your answers to the nearest dollar amount Leave no cells blank be certain to enter 0 wherever required Input all amounts as positive values Round your intermediate calculations and final answers to the nearest dollar amount Omit the $ sign in your response ) SIMID SPORTS CO Budgeted Balance Sheet March 31, 2012 Assets $ Total Current Assets $ Total Assets $ Liabilities and Equity $ Total Liabilities $ Total Stockholders' Equity Total Liabilities Equity $ Near the end of 2011, the management of Simid Sports Co , a merchandising company, prepared the following estimated balance sheet for December 31, 2011 SIMID SPORTS COMPANY Estimated Balance Sheet December 31, 2011 Assets Cash $ 35,500 Accounts receivable 520,000 Inventory 150,000 Total current assets Equipment $ Less accumulate d depreciatio n 705,500 536,000 67,000 Total assets $ Liabilities and Equity Accounts $ payable 355,000 Bank loan payable 14,000 Taxes payable (due 469,000 90,000 1,174,500 3 15 2012) Total liabilities $ Common stock 470,000 Retained earnings 459,000 245,500 Total stockholder s' equity Total liabilities and equity 715,500 $ 1,174,500 To prepare a master budget for January, February, and March of 2012, management gathers the following information a Simid Sports' single product is purchased for $30 per unit and resold for $57 per unit The expected inventory level of 5,000 units on December 31, 2011, is more than management's desired level for 2012, which is 20 of the next month's expected sales (in units) Expected sales are January, 7,500 units February, 9,250 units March, 10,750 units and April, 9,500 units b Cash sales and credit sales represent 30 and 70 , respectively, of total sales Of the credit sales, 70 is collected in the first month after the month of sale and 30 in the second month after the month of sale For the December 31, 2011, accounts receivable balance, $125,000 is collected in January and the remaining $395,000 is collected in February c Merchandise purchases are paid for as follows 20 in the first month after the month of purchase and 80 in the second month after the month of purchase For the December 31, 2011, accounts payable balance, $80,000 is paid in January and the remaining $275,000 is paid in February d Sales commissions equal to 20 of sales are paid each month Sales salaries (excluding commissions) are $90,000 per year e General and administrative salaries are $132,000 per year Maintenance expense equals $2,000 per month and is paid in cash f Equipment reported in the December 31, 2011, balance sheet was purchased in January 2011 It is being depreciated over eight years under the straight line method with no salvage value The following amounts for new equipment purchases are planned in the coming quarter January, $38,000 February, $97,000 and March, $29,500 This equipment will be depreciated under the straight line method over eight years with no salvage value A full month's depreciation is taken for the month in which equipment is purchased g The company plans to acquire land at the end of March at a cost of $180,000, which will be paid with cash on the last day of the month h Simid Sports has a working arrangement with its bank to obtain additional loans as needed The interest rate is 12 per year, and interest is paid at each month end based on the beginning balance Partial or full payments on these loans can be made on the last day of the month The company has agreed to maintain a minimum ending cash balance of $50,610 in each month i The income tax rate for the company is 30 Income taxes on the first quarter's income will not be paid until April 15 Required Prepare a master budget for each of the first three months of 2012 include the following component budgets 8 1 Monthly sales budgets (Omit the $ sign in your response ) SIMID SPORTS CO Sales Budget January, February, and March 2012 Budgeted Units January 2012 Budgeted Unit Price Budgeted Total Dollars $ $ February 2012 March 2012 Total for the first quarter $ 9 2 Monthly merchandise purchases budgets (Units to be deducted should be indicated with a minus sign Omit the $ signs in your response ) SIMID SPORTS CO Merchandise Purchases Budget January, February, and March 2012 January February March Total $ $ $ $ $ $ $ $ 10 3 Monthly selling expense budgets (Omit the $ signs in your response ) SIMID SPORTS CO Selling Expense Budget January, February, and March 2012 January February March $ $ $ Total $ Total selling expenses $ $ $ $ 11 4 Monthly general and administrative expense budgets (Do not round your intermediate calculations Round your final answers to the nearest whole dollar Omit the $ sign in your response ) SIMID SPORTS CO General and Administrative Expense Budget January, February, and March 2012 January 12 March Total $ Total expenses February $ $ $ $ $ $ $ 5 Monthly capital expenditures budgets (Leave no cells blank be certain to enter 0 wherever required Input all amounts as positive values Omit the $ sign in your response ) SIMID SPORTS CO Capital Expenditures Budget January, February, and March 2012 January March $ Total February $ $ $ $ $ 13 6 Monthly cash budgets (Leave no cells blank be certain to enter 0 wherever required Input all amounts as positive values except negative preliminary cash balance and repayment of loan to bank which should be indicated by a minus sign Round your intermediate calculations and final answers to the nearest dollar amount Omit the $ sign in your response ) SIMID SPORTS CO Cash Budget January, February, and March 2012 January February March $ $ $ $ $ $ $ $ $ Total cash available Cash disbursements Total cash disbursements 14 7 Budgeted income statement for the entire first quarter (not for each month) (Round your answers to the nearest dollar amount Input all amounts as positive values Omit the $ sign in your response ) SIMID SPORTS CO Budgeted Income Statement For Three Months Ended March 31, 2012 $ Operating expenses $ $ 15 8 Budgeted balance sheet as of March 31, 2012 (Be sure to list the assets in order of their liquidity Round your answers to the nearest dollar amount Leave no cells blank be certain to enter 0 wherever required Input all amounts as positive values Round your intermediate calculations and final answers to the nearest dollar amount Omit the $ sign in your response ) SIMID SPORTS CO Budgeted Balance Sheet March 31, 2012 Assets $ Total Current Assets $ Total Assets $ Liabilities and Equity $ Total Liabilities $ Total Stockholders' Equity Total Liabilities Equity $

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*Look at .Doc attachment Near the end of 2011, the management of Simid Sports Co., a merchandising company, prepared the following estimated balance sheet for

*Look at .Doc attachment Near the end of 2011, the management of Simid Sports Co., a merchandising company, prepared the following estimated balance sheet for December 31, 2011. SIMID SPORTS COMPANY Estimated Balance Sheet December 31, 2011 Assets Cash $ 35,500 Accounts receivable 520,000 Inventory 150,000 Total current assets 705,500 Equipment $ 536,000 Less accumulated depreciation 67,000 469,000 Total assets $ 1,174,500 Liabilities and Equity Accounts payable $ 355,000 Bank loan payable 14,000 Taxes payable (due 3/15/2012) 90,000 Total liabilities $ 459,000 Common stock 470,000 Retained earnings 245,500 Total stockholders? equity 715,500 Total liabilities and equity $ 1,174,500 To prepare a master budget for January, February, and March of 2012, management gathers the following information. a. Simid Sports? single product is purchased for $30 per unit and resold for $57 per unit. The expected inventory level of 5,000 units on December 31, 2011, is more than management?s desired level for 2012, which is 20% of the next month?s expected sales (in units). Expected sales are: January, 7,500 units; February, 9,250 units; March, 10,750 units; and April, 9,500 units. b. Cash sales and credit sales represent 30% and 70%, respectively, of total sales. Of the credit sales, 70% is collected in the first month after the month of sale and 30% in the second month after the month of sale. For the December 31, 2011, accounts receivable balance, $125,000 is collected in January and the remaining $395,000 is collected in February. c. Merchandise purchases are paid for as follows: 20% in the first month after the month of purchase and 80% in the second month after the month of purchase. For the December 31, 2011, accounts payable balance, $80,000 is paid in January and the remaining $275,000 is paid in February. d. Sales commissions equal to 20% of sales are paid each month. Sales salaries (excluding commissions) are $90,000 per year. e. General and administrative salaries are $132,000 per year. Maintenance expense equals $2,000 per month and is paid in cash. f. Equipment reported in the December 31, 2011, balance sheet was purchased in January 2011. It is being depreciated over eight years under the straight-line method with no salvage value. The following amounts for new equipment purchases are planned in the coming quarter: January, $38,000; February, $97,000; and March, $29,500. This equipment will be depreciated under the straight-line method over eight years with no salvage value. A full month?s depreciation is taken for the month in which equipment is purchased. g. The company plans to acquire land at the end of March at a cost of $180,000, which will be paid with cash on the last day of the month. h. Simid Sports has a working arrangement with its bank to obtain additional loans as needed. The interest rate is 12% per year, and interest is paid at each month-end based on the beginning balance. Partial or full payments on these loans can be made on the last day of the month. The company has agreed to maintain a minimum ending cash balance of $50,610 in each month. i. The income tax rate for the company is 30%. Income taxes on the first quarter?s income will not be paid until April 15. Required: Prepare a master budget for each of the first three months of 2012; include the following component budgets: 8. 1. Monthly sales budgets. (Omit the "$" sign in your response.) SIMID SPORTS CO. Sales Budget January, February, and March 2012 Budgeted Units Budgeted Unit Price Budgeted Total Dollars January 2012 $ $ February 2012 March 2012 Total for the first quarter $ 9. 2. Monthly merchandise purchases budgets. (Units to be deducted should be indicated with a minus sign. Omit the "$" & "%" signs in your response.) SIMID SPORTS CO. Merchandise Purchases Budget January, February, and March 2012 January February March Total % % % $ $ $ $ $ $ $ $ 10. 3. Monthly selling expense budgets. (Omit the "$" & "%" signs in your response.) SIMID SPORTS CO. Selling Expense Budget January, February, and March 2012 January February March Total $ $ $ % % % $ Total selling expenses $ $ $ $ 11. 4. Monthly general and administrative expense budgets. (Do not round your intermediate calculations. Round your final answers to the nearest whole dollar. Omit the "$" sign in your response.) SIMID SPORTS CO. General and Administrative Expense Budget January, February, and March 2012 January February March Total $ $ $ $ Total expenses $ $ $ $ 12. 5. Monthly capital expenditures budgets. (Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values. Omit the "$" sign in your response.) SIMID SPORTS CO. Capital Expenditures Budget January, February, and March 2012 January February March $ $ $ Total $ $ $ 13. 6. Monthly cash budgets. (Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values except negative preliminary cash balance and repayment of loan to bank which should be indicated by a minus sign. Round your intermediate calculations and final answers to the nearest dollar amount. Omit the "$" sign in your response.) SIMID SPORTS CO. Cash Budget January, February, and March 2012 January February March $ $ $ Total cash available Cash disbursements Total cash disbursements $ $ $ $ $ $ 14. 7. Budgeted income statement for the entire first quarter (not for each month). (Round your answers to the nearest dollar amount. Input all amounts as positive values. Omit the "$" sign in your response.) SIMID SPORTS CO. Budgeted Income Statement For Three Months Ended March 31, 2012 $ Operating expenses $ $ 15. 8. Budgeted balance sheet as of March 31, 2012. (Be sure to list the assets in order of their liquidity. Round your answers to the nearest dollar amount. Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values. Round your intermediate calculations and final answers to the nearest dollar amount. Omit the "$" sign in your response.) SIMID SPORTS CO. Budgeted Balance Sheet March 31, 2012 Assets $ Total Current Assets $ Total Assets $ Liabilities and Equity $ Total Liabilities $ Total Stockholders' Equity Total Liabilities & Equity $ image text in transcribed

Near the end of 2011, the management of Simid Sports Co., a merchandising company, prepared the following estimated balance sheet for December 31, 2011. SIMID SPORTS COMPANY Estimated Balance Sheet December 31, 2011 Assets Cash $ 35,500 Accounts receivable 520,000 Inventory 150,000 Total current assets Equipment $ Less accumulate d depreciatio n 705,500 536,000 67,000 Total assets $ Liabilities and Equity Accounts $ payable 355,000 Bank loan payable 14,000 Taxes payable (due 469,000 90,000 1,174,500 3/15/2012) Total liabilities $ Common stock 470,000 Retained earnings 459,000 245,500 Total stockholder s' equity Total liabilities and equity 715,500 $ 1,174,500 To prepare a master budget for January, February, and March of 2012, management gathers the following information. a. Simid Sports' single product is purchased for $30 per unit and resold for $57 per unit. The expected inventory level of 5,000 units on December 31, 2011, is more than management's desired level for 2012, which is 20% of the next month's expected sales (in units). Expected sales are: January, 7,500 units; February, 9,250 units; March, 10,750 units; and April, 9,500 units. b. Cash sales and credit sales represent 30% and 70%, respectively, of total sales. Of the credit sales, 70% is collected in the first month after the month of sale and 30% in the second month after the month of sale. For the December 31, 2011, accounts receivable balance, $125,000 is collected in January and the remaining $395,000 is collected in February. c. Merchandise purchases are paid for as follows: 20% in the first month after the month of purchase and 80% in the second month after the month of purchase. For the December 31, 2011, accounts payable balance, $80,000 is paid in January and the remaining $275,000 is paid in February. d. Sales commissions equal to 20% of sales are paid each month. Sales salaries (excluding commissions) are $90,000 per year. e. General and administrative salaries are $132,000 per year. Maintenance expense equals $2,000 per month and is paid in cash. f. Equipment reported in the December 31, 2011, balance sheet was purchased in January 2011. It is being depreciated over eight years under the straight-line method with no salvage value. The following amounts for new equipment purchases are planned in the coming quarter: January, $38,000; February, $97,000; and March, $29,500. This equipment will be depreciated under the straight-line method over eight years with no salvage value. A full month's depreciation is taken for the month in which equipment is purchased. g. The company plans to acquire land at the end of March at a cost of $180,000, which will be paid with cash on the last day of the month. h. Simid Sports has a working arrangement with its bank to obtain additional loans as needed. The interest rate is 12% per year, and interest is paid at each month-end based on the beginning balance. Partial or full payments on these loans can be made on the last day of the month. The company has agreed to maintain a minimum ending cash balance of $50,610 in each month. i. The income tax rate for the company is 30%. Income taxes on the first quarter's income will not be paid until April 15. Required: Prepare a master budget for each of the first three months of 2012; include the following component budgets: 8. 1. Monthly sales budgets. (Omit the "$" sign in your response.) SIMID SPORTS CO. Sales Budget January, February, and March 2012 Budgeted Units January 2012 Budgeted Unit Price Budgeted Total Dollars $ $ February 2012 March 2012 Total for the first quarter $ 9. 2. Monthly merchandise purchases budgets. (Units to be deducted should be indicated with a minus sign. Omit the "$" & "%" signs in your response.) SIMID SPORTS CO. Merchandise Purchases Budget January, February, and March 2012 January February March % % % Total $ $ $ $ $ $ $ $ 10. 3. Monthly selling expense budgets. (Omit the "$" & "%" signs in your response.) SIMID SPORTS CO. Selling Expense Budget January, February, and March 2012 January February March $ $ $ % % Total % $ Total selling expenses $ $ $ $ 11. 4. Monthly general and administrative expense budgets. (Do not round your intermediate calculations. Round your final answers to the nearest whole dollar. Omit the "$" sign in your response.) SIMID SPORTS CO. General and Administrative Expense Budget January, February, and March 2012 January 12. March Total $ Total expenses February $ $ $ $ $ $ $ 5. Monthly capital expenditures budgets. (Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values. Omit the "$" sign in your response.) SIMID SPORTS CO. Capital Expenditures Budget January, February, and March 2012 January March $ Total February $ $ $ $ $ 13. 6. Monthly cash budgets. (Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values except negative preliminary cash balance and repayment of loan to bank which should be indicated by a minus sign. Round your intermediate calculations and final answers to the nearest dollar amount. Omit the "$" sign in your response.) SIMID SPORTS CO. Cash Budget January, February, and March 2012 January February March $ $ $ $ $ $ $ $ $ Total cash available Cash disbursements Total cash disbursements 14. 7. Budgeted income statement for the entire first quarter (not for each month). (Round your answers to the nearest dollar amount. Input all amounts as positive values. Omit the "$" sign in your response.) SIMID SPORTS CO. Budgeted Income Statement For Three Months Ended March 31, 2012 $ Operating expenses $ $ 15. 8. Budgeted balance sheet as of March 31, 2012. (Be sure to list the assets in order of their liquidity. Round your answers to the nearest dollar amount. Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values. Round your intermediate calculations and final answers to the nearest dollar amount. Omit the "$" sign in your response.) SIMID SPORTS CO. Budgeted Balance Sheet March 31, 2012 Assets $ Total Current Assets $ Total Assets $ Liabilities and Equity $ Total Liabilities $ Total Stockholders' Equity Total Liabilities & Equity $