Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following bata relate to the operouons or snow company, a wote OULOTO Consumer googs. Current assets as of March 31 Cash Accounts receivable Inventory

image text in transcribed
image text in transcribed
The following bata relate to the operouons or snow company, a wote OULOTO Consumer googs. Current assets as of March 31 Cash Accounts receivable Inventory Building and equipment, net Accounts payable Connon stock Metained entning 5 7,100 $ 18,400 $ 37,200 $ 122,400 22.050 $ 150,000 $ 13,050 . The gross margin is 25% of sales. b. Actual and budgeted sales data: Mareh (actual) April May June $ 46,000 $ 62,000 $69.000 $ 92,000 4).000 July c. Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following sale. The accounts receivable at March 31 are a result of March credit sales d. Each month's ending inventory should equalBox of the following months budgeted cost of goods sold e. One-half of a month's inventory purchases is paid for in the month of purchase, the other half a paid for the following month. The accounts payable at March 31 are the result of March purchases of inventory Monthly expenses are as follows commissions, 12% of sales tent. $1.500 per month other expenses excluding depreciation, 6% of sales. Assume that these expenses are paid monthly Depreciations $910 per month includes depreciation on new assets) g. Equipment costing $100 will be purchased for cash in April h Management would like to maintain a minimum cash balance of at least $4.000 the end of each month. The company has an agreement with a local bank that allows the company to borrow is increments of $1000 t the beginning of each month up to a total loan balance of $20,000. The interest rate on these loans per month and torty w Wassume that interest is not compounded. The company would, as far as table, repay the loan plus accused Wrest at the agd of the quarter 5. Prepare a balance sheet as of June 30. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Prepare a balance sheet as of June 30. Shilow Company Balance Sheet June 30 Assets Current assets: + Total current assets 0 Total assets $ 0 Liabilities and Stockholders' Equity Stockholders' equity

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

Students also viewed these Accounting questions