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My homework is telling me that my answer is not complete and I cannot figure out what I am missing. Here is my balance sheet
My homework is telling me that my answer is not complete and I cannot figure out what I am missing. Here is my balance sheet along with the info of the problem
The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: Cash 3 3,300 Accounts receivable $ 23,200 Inventor},Y $ $4,400 Building and equipment, net S 126,000 Accounts payable $ 26,550 Common stock S 150,000 Retained earnings $ 25,350 a. The gross margin is 25% of sales. b. Actual and budgeted sales data: March tactual} $ 58,000 April $ T4,000 May $ 79,000 June $ 104,000 July $ 55,000 c. Sales are 60% for cash and 40% on credit Credit sales are collected in the month following sale. The accounts receivable at March 3'1 are a result of March credit sales. d. Each month's ending inventory should equal 80% of the following month's budgeted cost of goods sold. e. Onehalf of a month's inventory purchases is paid for in the month of purchase; the other half is paid for in the following month. The accounts payable at March 31 are the result of March purchases of inventory. f. Monthly expenses are as follows: commissions, 12% of sales; rent, $3,100 per month; other expenses {excluding depreciation), 6% of sales. Assume that these expenses are paid monthly. Depreciation is $945 per month [includes depreciation on new assets}. g. Equipment costing $2,300 will be purchased for cash in April. h. Management would like to maintain a minimum cash balance of at least $4,000 at the end of each month. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month, up to a total loan balance of $20,000. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. The company would, as far as it is able, repaythe loan plus accumulated interest at the end of the quarter. Prepare a balance sheet as of June 30. Shilow Company Balance Sheet June 30 Assets Current assets: Cash 5,210 Accounts receivable 41,600 Inventory 33,000 Total current assets 79,810 Building and equipment-net 125,465 Total assets 205,275 Liabilities and Stockholders' Equity Accounts payable $ 24,300 Stockholders' equity: Common stock 150,000 Retained earnings 30,975 180,975 Total liabilities and stockholders' equity $ 205,275Step by Step Solution
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