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. Sales are expected to be $80,800 in January, $100,800 in February, and $105,800 in Morch. 2. All sales are on credit and it collects 20% of all soles in the month of the sole, 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 sales force a commission equal to 3% of sales, 7. 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 $1,800 per month 9. On January 1st, the company purchased an insurance policy covering 24 months for $28,800, 10. All selling and administrative expenses are paid in the month they are incurred except for commissions that are pold in the month after they are earned and the Insurance which is pald two year in advance, 11. The company purchased $4,000 of Land on February Sath. They paid cash for the land, 12. Interest on long-term debt is equal to 1% of the beginning balance and is peld each month. The company must maintain a minimum balance in cash of $15,000 and will use any cash surplus to pay down long-term debt. The company borrows cash in $1,000 Increments 13. The company is subject to a 30% income tax rate. The company pays Income taxes in the month after they are accrued (expensed) 14. The company's Board of Directors declared a cash dividend of $950 on January 4th. The dividend will be paid on February 10th. 15. The company had a beginning balance sheet (as of January 1) as follows: Assets Llabilities & SE Current Assets Current Liabilities $16,000 Accounts Payable $23,500 Accounts Receivable 48,000 Commissions Payable 3,400 a Cash Prey 1 of 9. ! Next > 15. The company had a beginning balance sheet (as of January 1) as follows: Assets Current Assets Cash Accounts Receivable Prepaid Insurance Inventory Total Current Assets Llabllltles & SE Current Liabilities $16,000 Accounts Payable 48,000 Commissions Payable O Income Taxes Payable 9,600 Dividends Payable 73,600 Total Current Liabilities $23,500 3,400 9,275 36,175 Long-term Debt 80,000 Property, Plant & Equipment Equipment Land Accumulated Depreciation Net PPE 95,000 Stockholders Equity 8,800 Common Stock (25,000) Return Earnings 78,800 Total SE 26,225 10,000 36,225 Total Assets $152,400 Total Llabilities & SE $152,400 Babcats Company's partically completed master budget is as follows: Sales Budget January $80,800 February $100,800 March $105,800 Credit Sales Cash Receipts from Customers From Current Month Credit Sales Sales Budget January $80,800 February $100,800 March $105,800 Credit Sales Cash Receipts from Customers From Current Month Credit Sales From Prior Month Credit Sales Total Cash Receipts from Customers (1) (Click to select) Inventory Purchases Budget January February $40,320 March $12,320 COGS Desired Ending Inventory Total INventory Needed Beginning Inventory Inventory Purchases (2) (Click to select) Cash Payments for Inventory Purchases For Current Month Purchases For Prior Month Purchases (3) Total Cash Payments for Inventory Purchases $40,761 (Click to select) Selling & Administrative Expenses Budget January February Variable Selling & Administrative Expenses Commissions Miscellaneous Total Variable S&A Expenses (4) (Click to select) 4,040 5,040 2,000 2,000 Fixed Selling & Administrative Expenses Miscellaneous Rent Supplies Depreciation Insurance Total Fixed S&A Expenses 1,800 1,800 (5) (Click to select) $6,100 $6,100 Cash Payments for S&A Expenses Commissions Utilities Advertising Salaries Depreciation (6) (Click to select) Insurance (7) (Click to select) $7,540 Total Cash Payments for S&A Expenses $36,916 Cash Budget January February Beginning Cash Balance Cash Receipts from Customers Total Cash Avaliable 80,160 Cash Payments For Inventory Purchases For S&A Expenses 40,761 For Interest (Click to select) For Income Taxes For Land Purchase For Dividends Total Cash Payments 87,752 Surplus (Deficit) (9) (Click to select) 39,547 Borrowing (Repayment) Ending Cash Balance (10) (Click to select) $ 15,000 Income Statement January $80,800 February $100,800 Sales Less: Variable Expenses COGS Variable S&A Expenses (11) (Click to select) Contrinbution Margin Less: Fixed Expenses Fixed S&A Expenses Interest Expense Pre-tax Net Income Income Taxes Expense After-tax Net Income 11,262 $26,278 14,493 $33,817 Balance Sheet Assets Current Assets Llabilities & SE Current Liabilities Balance Sheet Assets Current Assets Llabilities & SE Current Llabilities Accounts Payable (18) (Click to select) Cash (12) (Click to select) (13) (Click to select) Commissions Payable (19) (Click to select) Accounts Receivable Prepold Insurance (14) (Click to select) Income Taxes Payable (15) (Click to select (20) Click to select) Dividends Payable Total Current Liabilities Inventory Total Current Assets Long term Debt (21) Click to old) Property, Plant & Equipment Equipment 95,000 26,225 26.225 Land (17) (Click to select) 95,000 Stockholders Equity (16) (Click to select) Common Stock Return Earnings Total SE $207,588 Total Liabilities & SE (22) (Click to set) Accumulated Depreciation Net PPE Total Assets $190,696 $207,588 $190,696 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. Sales are expected to be $80,800 in January, $100,800 in February, and $105,800 in Morch. 2. All sales are on credit and it collects 20% of all soles in the month of the sole, 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 sales force a commission equal to 3% of sales, 7. 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 $1,800 per month 9. On January 1st, the company purchased an insurance policy covering 24 months for $28,800, 10. All selling and administrative expenses are paid in the month they are incurred except for commissions that are pold in the month after they are earned and the Insurance which is pald two year in advance, 11. The company purchased $4,000 of Land on February Sath. They paid cash for the land, 12. Interest on long-term debt is equal to 1% of the beginning balance and is peld each month. The company must maintain a minimum balance in cash of $15,000 and will use any cash surplus to pay down long-term debt. The company borrows cash in $1,000 Increments 13. The company is subject to a 30% income tax rate. The company pays Income taxes in the month after they are accrued (expensed) 14. The company's Board of Directors declared a cash dividend of $950 on January 4th. The dividend will be paid on February 10th. 15. The company had a beginning balance sheet (as of January 1) as follows: Assets Llabilities & SE Current Assets Current Liabilities $16,000 Accounts Payable $23,500 Accounts Receivable 48,000 Commissions Payable 3,400 a Cash Prey 1 of 9. ! Next > 15. The company had a beginning balance sheet (as of January 1) as follows: Assets Current Assets Cash Accounts Receivable Prepaid Insurance Inventory Total Current Assets Llabllltles & SE Current Liabilities $16,000 Accounts Payable 48,000 Commissions Payable O Income Taxes Payable 9,600 Dividends Payable 73,600 Total Current Liabilities $23,500 3,400 9,275 36,175 Long-term Debt 80,000 Property, Plant & Equipment Equipment Land Accumulated Depreciation Net PPE 95,000 Stockholders Equity 8,800 Common Stock (25,000) Return Earnings 78,800 Total SE 26,225 10,000 36,225 Total Assets $152,400 Total Llabilities & SE $152,400 Babcats Company's partically completed master budget is as follows: Sales Budget January $80,800 February $100,800 March $105,800 Credit Sales Cash Receipts from Customers From Current Month Credit Sales Sales Budget January $80,800 February $100,800 March $105,800 Credit Sales Cash Receipts from Customers From Current Month Credit Sales From Prior Month Credit Sales Total Cash Receipts from Customers (1) (Click to select) Inventory Purchases Budget January February $40,320 March $12,320 COGS Desired Ending Inventory Total INventory Needed Beginning Inventory Inventory Purchases (2) (Click to select) Cash Payments for Inventory Purchases For Current Month Purchases For Prior Month Purchases (3) Total Cash Payments for Inventory Purchases $40,761 (Click to select) Selling & Administrative Expenses Budget January February Variable Selling & Administrative Expenses Commissions Miscellaneous Total Variable S&A Expenses (4) (Click to select) 4,040 5,040 2,000 2,000 Fixed Selling & Administrative Expenses Miscellaneous Rent Supplies Depreciation Insurance Total Fixed S&A Expenses 1,800 1,800 (5) (Click to select) $6,100 $6,100 Cash Payments for S&A Expenses Commissions Utilities Advertising Salaries Depreciation (6) (Click to select) Insurance (7) (Click to select) $7,540 Total Cash Payments for S&A Expenses $36,916 Cash Budget January February Beginning Cash Balance Cash Receipts from Customers Total Cash Avaliable 80,160 Cash Payments For Inventory Purchases For S&A Expenses 40,761 For Interest (Click to select) For Income Taxes For Land Purchase For Dividends Total Cash Payments 87,752 Surplus (Deficit) (9) (Click to select) 39,547 Borrowing (Repayment) Ending Cash Balance (10) (Click to select) $ 15,000 Income Statement January $80,800 February $100,800 Sales Less: Variable Expenses COGS Variable S&A Expenses (11) (Click to select) Contrinbution Margin Less: Fixed Expenses Fixed S&A Expenses Interest Expense Pre-tax Net Income Income Taxes Expense After-tax Net Income 11,262 $26,278 14,493 $33,817 Balance Sheet Assets Current Assets Llabilities & SE Current Liabilities Balance Sheet Assets Current Assets Llabilities & SE Current Llabilities Accounts Payable (18) (Click to select) Cash (12) (Click to select) (13) (Click to select) Commissions Payable (19) (Click to select) Accounts Receivable Prepold Insurance (14) (Click to select) Income Taxes Payable (15) (Click to select (20) Click to select) Dividends Payable Total Current Liabilities Inventory Total Current Assets Long term Debt (21) Click to old) Property, Plant & Equipment Equipment 95,000 26,225 26.225 Land (17) (Click to select) 95,000 Stockholders Equity (16) (Click to select) Common Stock Return Earnings Total SE $207,588 Total Liabilities & SE (22) (Click to set) Accumulated Depreciation Net PPE Total Assets $190,696 $207,588 $190,696