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Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Merchandise purchases budgets. Budgeted sales units Calculation of

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Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Merchandise purchases budgets. Budgeted sales units Calculation of Desired ending inventory Next period budgeted sales units Ratio of inventory to future sales Total required units Units to be purchased Cost per unit Cost of merchandise purchases DIMSDALE SPORTS Merchandise Purchases Budget January 7,000 February March 8,500 11,000 7,000 8,500 11,000 20% 20% 20% < Required 1 Required 3 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Cash budgets. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.) Beginning cash balance Total cash available Less: Cash payments for: Total cash payments Preliminary cash balance Ending cash balance DIMSDALE SPORTS COMPANY Cash Budget January February March 0 0 0 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Budgeted income statement for the entire first quarter (not for each month). (Round your final answers to the nearest whole dollar.) DIMSDALE SPORTS COMPANY Budgeted Income Statement For Three Months Ended March 31 Selling, general and administrative expenses Total operating expenses < Required 6 0 0 $ 0 Required 8 > Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Budgeted balance sheet as of March 31. (Round your final answers to the nearest whole dollar.) DIMSDALE SPORTS COMPANY Assets Cash Budgeted Balance Sheet March 31 Accounts receivable Inventory Total current assets Land Equipment Less: Accumulated depreciation Equipment, Net Total assets Liabilities and Equity Liabilities Accounts payable Income taxes payable Total liabilities Stockholders' Equity Common stock Retained earnings Total Stockholders' Equity Total Liabilities and Equity 0 Required: Prepare a master budget for the months of January, February, and March that has the following budgets: 1. Sales budgets. 2. Merchandise purchases budgets. 3. Selling expense budgets. 4. General and administrative expense budgets. Hint: Depreciation is included in the general and administrative budget for merchandisers. 5. Capital expenditures budgets. 6. Cash budgets. 7. Budgeted income statement for entire quarter (not monthly) ended March 31. 8. Budgeted balance sheet as of March 31. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Sales budgets. DIMSDALE SPORTS Sales Budget January February March Totals Budgeted sales units 7,000 $ 8,500 11,000 26,500 Selling price per unit $ Total budgeted sales $ 59 $ 413,000 $ 501,500 $ 59 $ 59 $ 59 649,000 $1,563,500 < Required 1 Required 2 > Cash Assets Accounts receivable Inventory DIMSDALE SPORTS COMPANY Balance Sheet December 31 $ 20,500 520,000 105,000 Equipment Less: Accumulated depreciation Equipment, net Total assets Liabilities Liabilities and Equity Accounts payable Loan payable Taxes payable (due March 15) Equity Common stock Retained earnings Total stockholders' equity Total liabilities and equity $ 588,000 73,500 $ 1,160,000 $ 345,000 12,000 91,000 $ 471,000 241,000 514,500 $ 448,000 712,000 $ 1,160,000 To prepare a master budget for January, February, and March, use the following information. a. The company's single product is purchased for $20 per unit and resold for $59 per unit. The inventory level of 5,250 units on December 31 is more than management's desired level, which is 20% of the next month's budgeted sales units. Budgeted sales are January, 7,000 units; February, 8,500 units; March, 11,000 units; and April, 10,500 units. All sales are on credit. b. Cash receipts from sales are budgeted as follows: January, $243,900; February, $721,019; March, $520,351. c. Cash payments for merchandise purchases are budgeted as follows: January, $60,000; February, $298,800; March, $91,200. d. Sales commissions equal to 20% of sales dollars are paid each month. Sales salaries (excluding commissions) are $4,500 per month. e. General and administrative salaries are $12,000 per month. Maintenance expense equals $2,000 per month and is paid in cash. f. New equipment purchases are budgeted as follows: January, $40,800; February, $98,400; and March, $19,200. Budgeted depreciation expense is January, $ 6,550; February, $7,575; and March, $7,775. g. The company budgets a land purchase at the end of March at a cost of $175,000, which will be paid with cash on the last day of the month. h. The company has an agreement with its bank to obtain additional loans as needed. The interest rate is 1% per month and interest is paid at each month-end based on the beginning-month balance. Partial or full payments on these loans are made on the last day of the month. The company maintains a minimum ending cash balance of $20,500 at the end of each month. i. The income tax rate for the company is 41%. Income taxes on the first quarter's income will not be paid until April 15.

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