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The company's cash budget shows an expected cash balance of 5,880,000 at December 31, 2020. All sales and purchases are on account. It is expected

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The company's cash budget shows an expected cash balance of 5,880,000 at December 31, 2020. All sales and purchases are on account. It is expected that 60% of quarterly sales are collected in cash within the quarter and the remainder is collected in the following quarter. Direct materials purchased from suppliers are paid 50st in the quarter incurred and the remainder in the following quarter. Purchases in the fourth quarter were the same as the materials used. In 2020, the company expects to purchase ad- ditional equipment costing W9,000,000, W4,000,000 of depreciation expense on equipment is included in the budget data and split cqually between manufacturing overhead and selling and administrativo expenses. Kimje expects to pay w8.000.000 on the outstanding notes payable balance plus all interest due and payable to December 31 (included in interest expense 3.500.000, above). Accounts paya. ble at December 31, 2020, includes amounts due suppliers (see above) plus other accounts payable of W7.200,000. Unpaid income taxes at December 31 will be 5.000.000 Instructions Prepare a budgeted statement of cost of goods sold, budgeted multiple-step income statement and retained earnings statement for 2020, and a budgeted elassified statement of financial position at December 31, 2020 Net income W21,900,000 Total assets W116,600,000 The company's cash budget shows an expected cash balance of 5,880,000 at December 31, 2020. All sales and purchases are on account. It is expected that 60% of quarterly sales are collected in cash within the quarter and the remainder is collected in the following quarter. Direct materials purchased from suppliers are paid 50st in the quarter incurred and the remainder in the following quarter. Purchases in the fourth quarter were the same as the materials used. In 2020, the company expects to purchase ad- ditional equipment costing W9,000,000, W4,000,000 of depreciation expense on equipment is included in the budget data and split cqually between manufacturing overhead and selling and administrativo expenses. Kimje expects to pay w8.000.000 on the outstanding notes payable balance plus all interest due and payable to December 31 (included in interest expense 3.500.000, above). Accounts paya. ble at December 31, 2020, includes amounts due suppliers (see above) plus other accounts payable of W7.200,000. Unpaid income taxes at December 31 will be 5.000.000 Instructions Prepare a budgeted statement of cost of goods sold, budgeted multiple-step income statement and retained earnings statement for 2020, and a budgeted elassified statement of financial position at December 31, 2020 Net income W21,900,000 Total assets W116,600,000

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