Plaza Bank has asked Roprin, Inc. for a budgeted balance sheet for the year ended December 31, 2015. The following information is available:

1. The cash budget shows expected cash balance of $26,000 at December 31, 2015.

2. The 2015 sales budget shows total annual sales of $500,000. All sales are made on account and accounts receivable at December 31, 2015 are expected to be 8% of annual sales.

3. The merchandise purchases budget shows a budgeted cost of goods sold for 2015 of $210,000 and ending merchandise inventory of $21,000. 20% of the ending inventory is expected to have not yet been paid at December 31, 2015.

4. The December 31, 2014 balance sheet includes the following balances: Equipment $127,000, Accumulated Depreciation $52,000, Common Stock $68,000, and Retained Earnings $21,000.

5. The budgeted income statement for 2015 includes the following: depreciation on equipment $6,000, federal income taxes $21,000 and net income $41,800. The income taxes will not be paid until 2016.

6. In 2015, management does not expect to purchase additional equipment or to declare any dividends. It does expect to pay all operating expenses, other than depreciation, in cash.

Instructions

Prepare an unclassified budgeted balance sheet at December 31, 2015.

Solution Ex. 193

Roprin, Inc.
Budgeted Balance Sheet
December 31, 2015
Assets
Liabilities and Stockholders Equity