Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Ok thanks, however, I can't work out how you got the figures used for the below as it doesn't seem to calculate? Expected Cash Collections.
Ok thanks, however, I can't work out how you got the figures used for the below as it doesn't seem to calculate? Expected Cash Collections. Merchandise Purchases Budget Budget in dollars Schedule of Expected Cash Disbursements for merchandise purchases Cash Budget Or the rest of the figures? Budgeted Income Statement using the Contribution Approach: Revenue: Sales revenue: $2,150,000 Cost of goods sold: Beginning inventory: $104,000 Add: Merchandise purchases: $344,000 Total cost of goods available for sale: $448,000 Less: Ending inventory: $68,400 Cost of goods sold: $379,600 Gross profit: $1,770,400 Operating expenses: Variable expenses: $86,016 (4% of sales) Fixed expenses: $344,000 Total operating expenses: $430,016 Net income before taxes: $1,340,384 Budgeted Balance Sheet as of June 30: Assets: Cash: $103,000 Accounts receivable: $302,000 Inventory: $68,400 Prepaid insurance: $21,000 Property and equipment: $1,006,000 Total assets: $1,500,400 Liabilities and equity: Accounts payable: $86,000 Dividends payable: $15,000 Common shares: $800,000 Retained earnings: $599,400 Total liabilities and equity: $1,500,400
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started