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This question has multiple parts I need the answer for all of them please. me work. Comprehensive Problem Value City Home Furnishings store, p its
This question has multiple parts I need the answer for all of them please. me work. Comprehensive Problem Value City Home Furnishings store, p its master budget on a quarterfy basis. The December 31 balance sheet is as follows mese are the beginning balances for the year) Accounts Receivable 50,000 Property and Equipment 80,000 Accounts Payable $102,000 Capital Stock 45,000 Retained Earnings $242,400 $242,400 1. Actual sales for December and budgeted sales for the next four months are as follows: Janua 240,000 250,000 275,000 260,000 2. sales are 75% cash and 25% on credit. Au credit sales are collected in the month following the sale. The accounts receivable at December 31 will be collected in January. 3. The company's gross profit 40% of sales. 4. Monthly expenses are budgeted as follows: salaries and wages, $14,000 per month: advertising, $25,000 per month; shipping, 5% of sales; other expense, 15% of sales. Depreciation for the quarter $8,000. 5. At the end of each month, inventory is to be on hand equal to 60% of the following month's sales needs, stated at cost. 6. 30% of a month's inventory purchases are paid for in the month of purchase; the remainder is paid for in the following month. 7. ary, the company will purchase land for $8,000 cash. During March, and wil be purchased for cash at of $2,000. 8. During January, the company will declare and pay $30,000 in cash dividends. 9. The company must maintain a minimum cash balance of open of aeditis available at a local bank for any borrowing that may be needed during the quarter. All borrowing done at the beginning of a month, and all repayments are is made at the end of a month. and repayment of principal must be in multiples of $1,000. Interest is paid only at the time of payment of principal. The annual interest rate is 18%. (Figure interest on whole months, e.g., 1/12, 2/12.) Chapter 9 Lecture Page 13 me work. Comprehensive Problem Value City Home Furnishings store, p its master budget on a quarterfy basis. The December 31 balance sheet is as follows mese are the beginning balances for the year) Accounts Receivable 50,000 Property and Equipment 80,000 Accounts Payable $102,000 Capital Stock 45,000 Retained Earnings $242,400 $242,400 1. Actual sales for December and budgeted sales for the next four months are as follows: Janua 240,000 250,000 275,000 260,000 2. sales are 75% cash and 25% on credit. Au credit sales are collected in the month following the sale. The accounts receivable at December 31 will be collected in January. 3. The company's gross profit 40% of sales. 4. Monthly expenses are budgeted as follows: salaries and wages, $14,000 per month: advertising, $25,000 per month; shipping, 5% of sales; other expense, 15% of sales. Depreciation for the quarter $8,000. 5. At the end of each month, inventory is to be on hand equal to 60% of the following month's sales needs, stated at cost. 6. 30% of a month's inventory purchases are paid for in the month of purchase; the remainder is paid for in the following month. 7. ary, the company will purchase land for $8,000 cash. During March, and wil be purchased for cash at of $2,000. 8. During January, the company will declare and pay $30,000 in cash dividends. 9. The company must maintain a minimum cash balance of open of aeditis available at a local bank for any borrowing that may be needed during the quarter. All borrowing done at the beginning of a month, and all repayments are is made at the end of a month. and repayment of principal must be in multiples of $1,000. Interest is paid only at the time of payment of principal. The annual interest rate is 18%. (Figure interest on whole months, e.g., 1/12, 2/12.) Chapter 9 Lecture Page 13
This question has multiple parts I need the answer for all of them please.
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