We really need to get this new material-handling equipment in operation just after the new year begins. I hope we can finance it largely with cash and marketable securities, but if necessary we can get a short-term loan down at MetroBank. This statement by Beth Davies-Lowry, president of Intercoastal Electronics Company, concluded a meeting she had called with the firms top management. Intercoastal is a small, rapidly growing wholesaler of consumer electronic products. The firms main product lines are small kitchen appliances and power tools. Marcia Wilcox, Intercoastals General Manager of Marketing, has recently completed a sales forecast. She believes the companys sales during the first quarter of 20x1 will increase by 10 percent each month over the previous months sales. Then Wilcox expects sales to remain constant for several months. Intercoastals projected balance sheet as of December 31, 20x0,is as follows:

Cash $ 35,000

Accounts receivable 224,000

Marketable securities 20,000 Inventory 154,000

Buildings and equipment (net of accumulated depreciation) 540,000

Total assets $ 973,000

Accounts payable $ 205,800

Bond interest payable 7,500

Property taxes payable 2,400

Bonds payable (12%; due in 20x6) 150,000

Common stock 500,000

Retained earnings 107,300

Total liabilities and stockholders equity $ 973,000

9. Prepare Intercoastal Electronics budgeted balance sheet as of March 31, 20x1. (Hint: On March 31, 20x1, Bond Interest Payable is $3,000 and Property Taxes Payable is $600.) (Round your answers to the nearest whole dollar.)

INTERCOASTAL ELECTRONICS COMPANY

Budgeted Balance Sheet

March 31, 20x1

Cash$

Accounts receivable

Inventory

Buildings and equipment

Total assets

Accounts payable

Bond interest payable 3,000

Property taxes payable 600

Bonds payable150,000

Common stock 500,000

Retained earnings

Total liabilities and stockholders' equity$