Prepare a budgeted balance sheet at December 31, 2014

BUDGETED BALANCE SHEET The following information are made available by Racquel and Associates: 1. The company desires to have a cash balance of P30,000 at the end of December 31, 2014 2. The 2014 sales budget is P750,000. All sales are on account and accounts receivable at December 31, 2104 are expected to be 10% of annual sales. 3. The budgeted cost of goods sold for 2014 is P210,000 and ending merchandise inventory is P21,000. The accounts payable is budgeted at 25% of the ending merchandise inventory. 4. The December 31, 2013 balance sheet includes the following balances: Equipment P 130,000 Accumulated depreciation 55,000 Common stock 68,000 Retained earnings 25,000 5. The budgeted income statement for 2014 includes the following: Depreciation on equipment 11,300 Income tax payable 21,000 Net income 70,450 6. The income taxes will not be paid until 2015 7. In 2014, management does not expect to purchase additional equipment or to declare any dividends. It does not expect to pay all operating expenses, other than depreciation, in cash