Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Ethics

Authors: Ronald F. Duska, Brenda Shay Duska, Julie Anne Ragatz

2nd Edition

1405196130, 978-1405196130

More Books

Students also viewed these Accounting questions

Question

Does it avoid use of underlining?

Answered: 1 week ago