Question
The Sunstate Bank has asked Whispering Winds Co. for a budgeted balance sheet for the year ended December 31, 2022. The following information is available:
The Sunstate Bank has asked Whispering Winds Co. for a budgeted balance sheet for the year ended December 31, 2022. The following information is available:
1. | The cash budget shows an expected cash balance of $80,000 at December 31, 2022. | ||
2. | The 2022 sales budget shows total annual sales of $850,000. All sales are made on account and accounts receivable at December 31, 2022 are expected to be 10% of annual sales. | ||
3. | The merchandise purchases budget shows budgeted cost of goods sold for 2022 of $630,000 and ending merchandise inventory of $95,000. 20% of the ending inventory is expected to have not yet been paid at December 31, 2022. | ||
4. | The December 31, 2021 balance sheet includes the following balances: Equipment $296,000, Accumulated Depreciation $122,000, Common Stock $270,000, and Retained Earnings $47,000. | ||
5. | The budgeted income statement for 2022 includes the following: depreciation on equipment $14,600, federal income taxes $25,000, and net income $58,400. The income taxes will not be paid until 2022. | ||
6. | In 2022, management does not expect to purchase additional equipment or to declare any dividends. It does expect to pay all operating expenses, other than depreciation, in cash. |
Prepare an unclassified budgeted balance sheet at December 31, 2022. (List Assets in order of liquidity.)
WHISPERING WINDSCO. Budgeted Balance Sheet choose the accounting period For the Month Ended December 31, 2022December 31, 2022For the Year Ended December 31, 2022 | ||||||
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Assets | ||||||
enter a balance sheet item | $enter a dollar amount | |||||
enter a balance sheet item | enter a dollar amount | |||||
enter a balance sheet item | enter a dollar amount | |||||
enter a balance sheet item | $enter a dollar amount | |||||
select between addition and deduction AddLess: | enter a balance sheet item | enter a dollar amount | ||||
enter a subtotal of the two previous amounts | ||||||
select a closing section name for this part of the balance sheet Total Current LiabilitiesTotal Liabilities and Stockholders' EquityIntangible AssetsProperty, Plant and EquipmentLong-term InvestmentsTotal AssetsTotal Intangible AssetsTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Current AssetsTotal Stockholders' EquityTotal Property, Plant and EquipmentCurrent AssetsLong-term LiabilitiesStockholders' EquityCurrent LiabilitiesTotal Liabilities | $enter a total amount for this part of the balance sheet | |||||
Liabilities and Stockholders' Equity | ||||||
enter a balance sheet item | $enter a dollar amount | |||||
enter a balance sheet item | enter a dollar amount | |||||
enter a balance sheet item | enter a dollar amount | |||||
enter a balance sheet item | enter a dollar amount | |||||
select a closing name for this part of the balance sheet Total Current LiabilitiesTotal Intangible AssetsProperty, Plant and EquipmentLong-term LiabilitiesStockholders' EquityIntangible AssetsCurrent LiabilitiesTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Stockholders' EquityTotal Long-term InvestmentsCurrent AssetsLong-term InvestmentsTotal Current AssetsTotal Property, Plant and EquipmentTotal Long-term LiabilitiesTotal Assets | $enter a total amount for this part of the balance sheet |
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