Question
The Four-Sight Lens Company presented the following balance sheet at March 31, 2015, the beginning of the budget period: Assets: Cash $9500 Accounts Receivable 33,300
The Four-Sight Lens Company presented the following balance sheet at March 31, 2015, the beginning of the budget period:
Assets:
Cash $9500
Accounts Receivable 33,300
Merchandise Inventory 66,600
Total Current Assets $109,400
Plant and Equipment $45,000
Less Accumulated Depreciation 18,000
Net plant and equipment 27,000
Total Assets $ 136,400
Liabilities and Owners Equity
Current Liabilities:
Accounts Payable $27,700
Accrued Taxes Payable 4,200
Total Current Liabilities 31,900
Owners Equity $104,500
Total Liabilities and Owners Equity $136,400
The company's budgeted operations for the month of April 2015 are shown as follows:
Cash Receipts:
From Cash Sales $14,800
From Collections of Accounts Receivable 20,100
Total $34,900
Cash Disbursements:
For Operating Expenses $14,500
For payment on accounts payable 17,000
Total $31,500
Other transactions and information:
Sales of merchandise on account $25,000
Purchases of merchandise (all on account) $18,500
Depreciation of plant and equipment 300
Additional Accrued taxes 1,200
Cost of goods sold 22,300
Minimum ending cash balance 9,000
Interest rate on borrowed funds 12%
Using the information above, prepare the following:
1. The detailed budget schedules for sales, cash balance, accounts receivable, merchandise inventory, accumulated depreciation, accounts payable, accrues taxes payable, and owners equity, all at April 30 2015.
2. The budgeted income statement for April 2015
3. Budgeted statement of cash receipts and disbursements for April 2015
4. The budgeted balance sheet at April 30, 2015
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