Question
Snowmass, Inc., manufactures and sells snowboards. Snowmass manufactures a single model, the Pipex. In late 2020, Snowmass's management accountant gathered the following data to
Snowmass, Inc., manufactures and sells snowboards. Snowmass manufactures a single model, the Pipex. In late 2020, Snowmass's management accountant gathered the following data to prepare budgets for January 2021: (Click the ic materials invent Data Table Budgeted balances at January 31, 2021 are as follows: Cash Accounts receivable Inventory Property, plant, and equipment (net) Accounts payable Long-term liabilities Stockholders' equity Selected budgeted information for December 2020 follows: Cash balance, December 31, 2020 ? ? ? GA $ 853,000 ? 181,000 ? $ 13,000 Budgeted sales Budgeted materials purchases 1,720,000 680,000 Customer invoices are payable within 30 days. From past experience, Snowmass's accountant projects 40% of invoices will be collected in the month invoiced, and 60% will be collected in the following month. Accounts payable relates only to the purchase of direct materials. Direct materials are purchased on credit with 30% of direct materials purchases paid during the month of the purchase, and 70% paid in the month following purchase Requirement 4. Prepare a budgeted balance sheet for January 31, 2021 by calculating the January 31, 2021 balances in (a) cash (b) accounts receivable (c) inventory (d) accounts payable and (e) plugging in the balance for stockholders' equity. Snowmass, Inc. Budgeted Balance Sheet January 31, 2021 Assets: Total Liabilities and Stockholders' Equity: Total
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