ols The information given below is Bobcats Company's beginning balance sheet, estimates and policies, and the partially completed Moster Budget for January and February. Use the information to answer the 22 Multiple Choice Questions, each asking for a missing number from the Master Budget. Round all your computations to the nearest dollar. 1. Sales are expected to be $80,300 in January, $100,300 in February, and $105,300 in March 2. All sales are on credit and it collects 20% of all sales in the month of the sale, the remaining 80% in the month after the sale. 3. The cost of goods sold is equal to 40% of sales. 4. The company likes to keep an ending inventory on hand equal to 15% of next month's cost of goods sold, 5. All purchases of inventory are on account, and the company pays for 60% of all purchases in the month of the purchase, 40% in the month after the purchase, 6. The company pays its sales force a commission equal to 3% of sales. 7. The company also believes that its miscellaneous expense is equal to $500 plus 2% of sales. 8. Rent is $2.000 per month. Supplies are $600 per month and Depreciation is $1,800 per month 9. On January 1st, the company purchased an insurance policy covering 24 months for $28.800. 10. All selling and administrative expenses are paid in the month they are incurred except for commissions that are paid in the month after they are earned and the insurance which is paid two year in advance. 11. The company purchased $4,000 of Land on February 18th. They paid cash for the land. 12. Interest on long-term debt is equal to 1% of the beginning balance and is paid each month. The company must maintain a minimum balance in cash of $15,000 and will use any cash surplus to pay down long-term debt. The company borrows cash in $1.000 increments. 13. The company is subject to a 30% Income tax rate. The company pays Income taxes in the month after they are accrued (expensed) 14. The company's Board of Directors declared a cash dividend of $950 on January 4th. The dividend will be paid on February 10th 15. The company had a beginning balance sheet (as of January 1) as follows: Assets Current Assets Cash Accounts Receivable Prepaid Insurance Inventory Total Current Assets Liabilities & SE Current Liabilities $16.000 Accounts Payable 48,000 Commissions Payable O Income Taxes Payable 9,600 Dividends Payable 73,600 Total Current Liabilities $23.500 3,400 9,275 0 36.175 Long-term Debt 80,000 Property, Plant & Equipment Equipment Land Accumulated Depreciation Net PPE 95,000 Stockholders Equity 8,800 Common Stock _(25.000) Return Earnings 78.800 Total SE 26,225 10,000 36,225 Total Assets $152,400 Totd Liabilities & SE $152,400 Babcats Company's partically completed master budget is as follows: Sales Budget ols Credit Sales January $80,300 February $100,300 March $105,300 Cash Receipts from Customers From Current Month Credit Sales From Prior Month Credit Sales Total Cash Receipts from Customers (1) (Click to select) Inventory Purchases Budget January February $40,120 March $42,120 - COGS Desired Ending Inventory Total INventory Needed Beginning Inventory Inventory Purchases (2) (Click to select) Cash Payments for Inventory Purchases For Current Month Purchases For Prior Month Purchases Total Cash Payments for Inventory Purchases (3) $40,623 (Click to select) Selling & Administrative Expenses Budget January February Variable Selling & Administrative Expenses Commissions Miscellaneous Total Variable S&A Expenses (4) (Click to select) 4,015 5,015 2,000 2.000 Fixed Selling & Administrative Expenses Miscellaneous Rent Supplies Depreciation Insurance 1,800 1,800 (5) (Click to select) $6,100 Total Fixed S&A Expenses $6.100 Cash Payments for S&A Expenses Commissions Utilities Advertising Salaries Depreciation (6) (Click to select) Insurance (7) (Click to select) $7,515 Total Cash Payments for S&A Expenses $36,906 Is Cash Budget January February Beginning Cash Balance Cash Receipts from Customers Total Cash Available 80,060 Cash Payments For Inventory Purchases For S&A Expenses 40,623 ] For Interest (8) (Click to select) For Income Taxes For Land Purchase For Dividends Total Cash Payments 87604 Surplus (Deficit) (9) (Click to select) 39,415 (10) Borrowing (Repayment) Ending Cash Balance (Click to select) $ 15,000 Income Statement January $80,300 February $100,300 (11) (Click to select) Sales Less: Variable Expenses COGS Variable S&A Expenses Contribution Margin Less: Fixed Expenses Fixed S&A Expenses Interest Expense Pre-tax Net Income Income Taxes Expense After-tax Net Income 11,180 $26,086 14,411 $33,625 Balance Sheer ASHOTS Current Assets kashi (10) ||||| out | (19) Accounts Receivable Liabilities & SE Current Liabilities (12) to y Accounts Payable (13) Click to Commissions Payable Income Taxes Payable (15) Dividends Payable Click to Total Current Ulabilities Prepaid insurance (14) Click to set (20) (Click to solo Inventory Total current Assets Long-term Debt (21) Click to select 95,000 Property. Plant & Equipment Equipment and 26,225 95.000 Stockholders Equity (10) Click to select) Common Stock Return Earnings Total SE $207,150 Total Liabilities & SE 26.225 (22) Click to see (17) Chck to select) accumulated Depreciation PPE cal Assets $190,314 $207,150 $190,314