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 $80.700 in January, $100.700 in February, and $105.700 in March 2. All sales are on credit and it collects 20% of all sales in the month of the sole, the remaining 80% in the month after the sole 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 paid in the month after they are eamed 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 1% of the beginning balance and is paid each month The company must maintain o 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) os follows: Assets Liabilities & SE Current Assets Current Liabilities Cash $16.000 Accounts Payable $23,500 Accounts Receivable 48,000 Commissions Payable 3.400 Prepaid Insurance Income Taxes Payable 9,275 Inventory 9600 Dividends Payable Total Current Assets 73,600 Total Current Liabilities 36,175 Total Current Assets 73.600 Total Current Liabumes 36,175 Long-term Debt 80.000 Property. Plant & Equipment Equipment Land Accumulated Depreciation Net PPE 95.000 Stockholders Equity 8.800 Common Stock _125.000) Return Earings 78.800 Tota! SE 26,225 10.000 36.225 Total Assets $152.400 Total Liabilities & SE $152,400 Babcats Company's partically completed master budget is as follows: Sales Budget Credit Sales January $80,700 February $100,700 March $105,700 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 $40,280 March $42.280 COGS Desired Ending Inventory Total INventory Needed Beginning Inventory Inventory Purchases (2) Inventory Purchases (2) (Chck to select) Cash Payments for inventory Purchases For Current Month Purchases For Prior Month Purchases (3) 19 Total Cash Payments for Inventory Purchases $40,733 (Click to select) Selling & Administrative Expenses Budget January February Variable Selling & Administrative Expenses Commissions (4) (Click to select) Miscellaneous Total Variable S&A Expenses 4,035 5,035 Fixed Selling & Administrative Expenses Miscellaneous Rent Supplies Depreciation 2,000 2,000 1,800 Insurance 1,800 (5) Click to select) $6,100 Total Fixed S&A Expenses $6,100 Cash Payments for S&A Expenses Commissions Utilities Cash Payments for S&A Expenses Commissions Utilities Advertising Salaries Depreciation (6) (Click to select) Insurance Total Cash Payments for S&A Expenses (7) Click to select) $7.535 $36,914 Cash Budget January February Beginning Cash Balance Cash Receipts from Customers Total Cash Available 80,140 Cash Payments For Inventory Purchases For S&A Expenses 40,733 For Interest (8) (Click to select) For Income Taxes For Land Purchase For Dividends Total Cash Payments 87722 Surplus (Deficit) (9) Click to select) 39,521 11n Surplus Deco (9) Click to select Borrowing (Repayment) Ending Cash Balance 39,521 (10) Click to select $ 15,000 Income Statement January $80,700 February $100,700 Click to select) 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 11.246 $26.240 14,477 $33.779 Balance Sheet Assets Current Assets Cash Liabilities & SE Current Liabilities Accounts Payable (18) (Click to select) (12) (Click to select) (13) (Click to select) Accounts Receivable Commissions Payable (19) (Cick to select) Prepaid Insurance (14) Click to select) Income Taxes Payable Balance Sheet Assets Current Assets Liabilities SE Current Liabilities Accounts Payable (1) 112) Tektos (13) Chek to selec) Commissions Payable (19) Closet Accounts Receivable (14) Income Taxes Payable Prepaid insurance (15) to seed) (20) I to select Inventory Total current Assets Dividends Payable Total Current Labs Long-term Debt (21) ICR to select 95000 Property. Plant & Equipment Equipment Land 26.225 26.225 93000 Stockholders Equity (16) Common Stock Click fo select) Return Earnings Total SE $207,502 Total Liabilities & SE (22) Click to see Click to see Accumulated Depreciation Net PPE Total Assets $190.620 $207,502 $190,620