Question
Nomads balance sheet on December 31, 20Y1 is as follows: Assets cash: 124,000 Accounts receivable [a]: 304,000 Inventory: 120,000 Prepaid insurance: 36,000 PP&E, net of
Nomads balance sheet on December 31, 20Y1 is as follows:
Assets
cash: 124,000
Accounts receivable [a]: 304,000
Inventory: 120,000
Prepaid insurance: 36,000
PP&E, net of accumulated depreciation: 796,000
Total assets: 1,380,000
Liabilities and Stockholders Equity
Accounts payable [b]: 163,800
Dividends payable: 50,000
Common stock: 1,000,000
Retained earnings: 166,200
Total liabilities & stockholders equity: $1,380,000
5. Budgeted income statement, 20Y2 (6 months) |
| |
Sales | 2,700,000 | Sales budget |
Cost of goods sold | 1,620,000 | Purchases budget |
Gross margin | 1,080,000 |
|
Selling and administrative expenses | 555,000 | S&A expense budget |
Operating income | 525,000 |
|
Interest expense | n.a. |
|
Income tax expense | 130,000 | Cash budget |
Net income | 395,000 |
|
6. Budgeted balance sheet, June 30, 20Y2 |
| |
Assets |
| |
Cash | 315,400 | Cash budget |
Accounts receivable | 400,000 | Sales budget |
Inventory | 156,000 | Purchases budget |
Prepaid insurance | 18000 | Jan 1 balance less insurance expense |
PP&E, net of depreciation | 90000 | Jan 1 balance plus acquisitions less depreciation |
Total assets | 979,400 |
|
I need help with the chart below
Liabilities and Stockholders Equity |
| |
Accounts payable |
| Purchases budget |
Common stock |
| Jan 1 balance |
Retained earnings |
| Jan 1 balance plus net income |
Total liabilities and stockholders equity |
|
|
7. Budgeted statement of cash flows, 20Y2 (6 months) |
| |
Cash provided by operating activities |
|
|
Net income |
| Income statement |
+ Depreciation |
| S&A expenses budget |
Increase in accounts receivable |
| Comparative balance sheets |
Increase in inventory |
| Comparative balance sheets |
+ Decrease in prepaid insurance |
| Comparative balance sheets |
+ Increase in accounts payable |
| Comparative balance sheets |
Total |
|
|
Cash used in investing activities |
|
|
Equipment purchases |
| Cash budget |
Cash used in financing activities |
|
|
Dividends paid |
| Cash budget |
Increase in cash balance |
|
|
Check figures:
Total budgeted sales revenue is $2,700,000
Total budgeted cash collections are $2,604,000
Total budgeted inventory purchases are $1,656,000
Budgeted cash payments for inventory purchases are $1,605,600
Budgeted cash balance on June 30 is $315,400
Budgeted net income is $395,000
Budgeted total assets on June 30 is $1,775,400
Cash provided by operating activities is $391,400
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