The information given below is Bobcats Company's beginning balance sheet, estimates and policies, and the partially completed Master Budget for January and February. Use the information to answer the 22 Multiple Choice Questions, each asking for a missing number from the Master Budget. Round all your computations to the nearest dollar. 1 Soles are expected to be $80.000 in January $100,000 in February, and $105.000 in March 2. All sales are on credit and it collects 20% of all sales in the month of the sale, the remaining 80% in the month after the sale. 3. The cost of goods sold is equal to 40% of sales 4 The company likes to keep an ending inventory on hand equal to 15% of next month's cost of goods sold, 5. All purchases of inventory are on account, and the company pays for 60% of all purchases in the month of the purchase. 40% in the month after the purchase 6. The company pays its salesforce a commission equal to 3% of sales 2. The company also believes that its miscellaneous expense is equal to $500 plus 2% of sales 8. Rent is $2.000 per month, Supplies are $600 per month and Depreciation is $1800 per month 9. On January 1st, the company purchased an insurance policy covering 24 months for $28.800 10. Alt selling and administrative expenses are paid in the month they are incurred except for commissions that are paid in the month after they are earned and the insurance which is paid two year in advance 11 The company purchased $4.000 of Land on February 18th They paid cash for the land 12. Interest on long term debt is equal to 16 of the beginning balance and is paid each month. The company must maintaina minimum balance in cash of $15,000 and will use any cash surplus to pay down long-term debt. The company boriows cash in $1000 increments 3 The company is subject to a 30% income tax rate. The company pays income taxes in the month after they are accrued expense) The company Board of Directors declared a cash dividend of $950 on January th. The dividend will be paid on February 10th 15. The company had a beginning balance sheet (as of January as follows Assets liabilities & SE Current Assets Current Liabilities Cash $16.000 Accounts Payable $23.500 Accounts Receivable 48000 Commissions Payable 3.400 Prepaid Insurance Olcome Taxes Payable 9279 Inventory Dividends Payable Total Current Assets 73.600 tot Current Libres 36573 Long term Debt 80000 Property. Plant & Equipment Lquipment and Accued Deprecio Net ** 90.000 Stockholders Equity 8800 Common Stock 33 000 etummings TWO SE 26223 FOTOD 2622 $152400 Total Assets $152.400 Total Liabilities & SE Babice Company portally completed master budget is as follows Sales Budget JAY SHOCOLAS 0000 Mich 310 ORE Tom Cro Monte From or Monte Sales Budget January $80,000 February $100,000 March $105,000 Credit Sales Cash Receipts from Customers From Current Month Credit Sales From Pror Month Credit Sales Total Cash Receipts from Customers (1) $64,000 Inventory Purchases Budget January February $40,000 March $42.000 COGS Desired Ending Inventory Total Inventory Needed Beginning Inventory Inventory Purchases (2) $28.400 Cash Payments for Inventory Purchases For Current Month Purchases For Prior Mouth Purchases Total Cost Payments for Inventory Purchases (3) $40.540 336610 Selling & Administrative Expenses Budget January February (4) Vanable Selling & Administrative Expenses Commissions Miscellaneous Total Variable SEANpies $2.400 4000 5,000 000 2000 Find Sing & Administrative Expenses Maceous Rent Suppliers Depreciation Insurance Total med SEAL penses 1800 1,800 (5) Cac to select $6,100 $6.100 Car Payments for SEAL onses Commissions Utiles ASIC Sales (6) Depreciation (6) (Click to select) Insurance (7) (Click to select) $7.500 Lotal Cash Payments for S&A Expenses $36.900 Cash Budget January February Beginning Cash Balance Cash Receipts from Customers Total Cash Available 80,000 Cash Payments For Inventory Purchases For S&A Expenses 40,540 For interest (8) Click to select) For Income Taxes For Land Purchase For Dividends Total Cash Payments 87,515 Surplus (Deficit) (9) (Click to select) 39,335 Borrowing Repayment) Ending Cash Balance (10) (Cick to select $ 15.000 Income Statement January $80,000 February $100,000 Sales Coss Varai Expenses COGS Vonable SA Expenses Contributon Margin Les Fred Expenses FSLAENDER trest Expense Pretax Not Income Income Taxes Exponse What tox Net income (11) ciekto 111.30 525970 4/870 S009 Balance Sheet Assets Current Assets Kash Liabilities & SE Current Liabilities Accounts Payable (12) (18) (131 1191 MC Graw Surplus (Deficit) (9) (Click to select) 39,335 Borrowing (Repayment) Ending Cash Balance (10) (Click to select) $ 15.000 Income Statement January $80,000 February $100,000 Sales Less. Variable Expenses COGS Variable S&A Expenses Contribution Margin Less Fixed Expenses Fixed S&A Expenses Interest Expense Pre-tax Net Income Income Taxes Expense After-tax Net Income (11) (Click to select) 11130 $25.970 47,870 $33,509 Balance Sheet Assets Current Assets Cash Liabilities & SE Current Liabilities (12) [(Click to select Accounts Payable (13) Click to selo) Commissions Payable (18) Click to select Accounts Receivable (19) (Click to select) Prepaid Insurance (14) Click to select Income Taxes Payable Inventory Total Current Assets (15) (Click to select) Dividends Payable Total Current Liabilities (20) KCK to select) Long term Debt (21) Click to select) Property. Plant & Equipment Equipment 95.000 95,000 Stockholders Equity (16) Common Stock Click to veloc Lond 26 225 (17) Click to Return Earnings Accumulated Depreciation Net PPE Total Assets 26,225 (22) Koch $190,085 Total $206.900 Total Liabilities & SE $190,085 $206.900