please let me know if you can answer this question as soon as possible
ACC 419 Winter, 2015 Case Page 1 of 3 You have just been hired as a new management trainee by Barb Weyer Corp. In the past, the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. Since you are well trained in budgeting, you have decided to prepare comprehensive budgets for the upcoming first quarter in order to show management the benefits that can be gained from an integrated budgeting program. To this end, you have worked with accounting and other areas to gather the information assembled below. Barb Weyer Corporation Estimated Balance Sheet December 31, 2014 Assets Cash Accounts Receivable Inventory Total Current Assets $36,000 525,000 150,000 Equipment Less accumulated depreciation Equipment, net 540,000 67,500 $711,000 472,500 Total Assets $1,183,500 Liabilities and Equity Accounts payable Bank loan payable Taxes payable (due 3/15/15) Total liabilities Common Stock Retained earnings Total stockholders' equity Total liabilities and equity $360,000 15,000 90,000 $465,000 472,500 246,000 718,500 $1,183,500 1. Barb Weyer.'s single product is purchased for $30 per unit and resold for $45 per unit. The expected inventory level of 5,000 units on December 31, 2014, is more than management's desired level for 2015, which is 25% of the next month's expected sales (in units). Expected sales are: January, 6,000 units; February, 8,000 units; March, 10,000 units; and April, 9,000 units. 2. Cash sales and credit sales represent 25% and 75%, respectively, of total sales. Of the credit sales, 60% is collected in the first month after the month of sale and 40% in the second month after the month of sale. For the $525,000 accounts receivable balance at ACC 419 Winter, 2015 Case Page 2 of 3 December 31, 2014, $315,000 is collected in January 2015 and the remaining $210,000 is collected in February 2015. 3. Merchandise purchases are paid for as follows: 20% in the first month after the month of purchase and 80% in the second month after the month of purchase. For the $360,000 accounts payable balance at December 31, 2014, $72,000 is paid in January 2015 and the remaining $288,000 is paid in February 2015. 4. Sales commissions equal to 20% of sales are paid each month. Sales salaries (excluding commissions) are $90,000 per year. 5. General and administrative salaries are $144,000 per year. Maintenance expense equals $3,000 per month and is paid in cash. 6. Equipment reported in the December 31, 2014, balance sheet was purchased in January 2013. It is being depreciated over 8 years under the straight-line method with no salvage value. The following amounts for new equipment purchases are planned in the coming quarter: January, $72,000; February, $96,000; and March, $28,800. This equipment will be depreciated using the straight-line method over 8 years with no salvage value. A full month's depreciation is taken for the month in which equipment is purchased. 7. The company plans to acquire land at the end of March at a cost of $150,000, which will be paid with cash on the last day of the month. 8. Barb Weyer Corp. has a working arrangement with its bank to obtain additional loans as needed. The interest rate is 12% per year, and interest is paid at each month-end based on the beginning balance. Partial or full payments on these loans can be made on the last day of the month. Isle has agreed to maintain a minimum ending cash balance of $36,000 in each month. 9. The income tax rate for the company is 40%. Income taxes on the first quarter's income will not be paid until April 15. Required Prepare a master budget for each of the first three months of 2015; include the following budgets (show supporting calculations, and round amounts to the nearest dollar): (3 points each) 1. Monthly sales budgets (showing both budgeted unit sales and dollar sales). 2. A schedule of expected cash collections from sales, by month and in total for the quarter. 3. A merchandise purchases budget in units and in dollars. Show the budget by month and in total for the quarter. 4. A schedule of expected cash disbursements for merchandise purchases, by month and in total for the quarter. 5. Monthly selling and general and administrative expense budgets. 6. A cash budget. Show the budget by month and in total for the quarter. Determine any borrowing that would be needed to maintain the minimum cash balance. 7. Budgeted income statement for the entire first quarter (not for each month). Briefly describe budgeting benefits to top management and behavioral issues that may occur during the process (padding the budget, etc.). (4 points) Check (2) Budgeted purchases: January - $90,000, (3) Budgeted selling expenses: February $79,500, (6) Ending cash balance: February - $107,850. ACC 419 Winter, 2015 Case Page 3 of 3 Case Assignment Instruction Sheet Notes: 1. Provide a cover sheet with the following information: Name Walsh Email Address Course Instructor Assignment Title Due Date Page # of # XYZ Student XYZ@ ACC 419 Case Week 9 (3/3/15 or 3/5/15) Page 1 of N 2. On additional pages, indicate Name and Page # of #. 3. Do not use a separate cover sheet, folder or binder. 4. Staple the pages together. https://www.chegg.com/homework-help/questions-and-answersear-end-2013-managementsimid-sports-co-merchandising-company-prepared-following-estimate-q5593174
