Question
Weis & Company Balance Sheet As of December 31, 2019 ASSETS LIABILITIES & STOCKHOLDERS EQUITY Current Assets Current Liabilities Cash $ 15,800 Accounts Payable $
Weis & Company | ||||
Balance Sheet | ||||
As of December 31, 2019 | ||||
ASSETS |
|
| LIABILITIES & STOCKHOLDERS EQUITY | |
Current Assets |
|
| Current Liabilities |
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Cash | $ 15,800 |
| Accounts Payable | $ 21,952 |
Accounts Receivable | $ 62,400 |
| Commissions Payable | $ 7,800 |
Prepaid Insurance | $ - 0 - |
| Dividends Payable | $ -0- |
Inventory | $ 11,200 |
| Income Taxes Payable | $ 1,600 |
Total Current Assets | $ 89,400 |
| Total Current Liabilities | $ 31,352 |
Property Plant & Equipment |
| Long term debt | $ 75,000 | |
Land | $ 40,000 |
| Stockholders' Equity |
|
Equipment | $ 80,000 |
| Common Stock | $ 63,048 |
Accumulated Depreciation | $(20,000) |
| Retained Earnings | $ 20,000 |
Total PP &E | $100,000 |
| Total Stockholders Equity | $ 83,048 |
TOTAL ASSETS | $189,400 |
| TOTAL LIABILITIES & STOCKHOLDERS EQUITY | $ 189,400 |
- Expected sales in January 2020 are $80,000 and expected sales in February 2020 are $70,000. All sales are credit sales.
- The company collects 20% of sales in the month of the sale and 80% in the month after the sale.
- The cost of sales are equal to 70% of the sales price.
- The company desires an ending inventory equal to 20% of the next months cost of sales.
- All purchases of inventory are on account.
- The company pays for 60% of its purchases in the month of the purchase and 40% in the month after the purchase.
- On January 1, 2020, the company purchased a 1-year insurance policy to cover all of 2020 for $7,200.
- The company pays a 10% sales commission to its sales staff that is paid in the month after it is earned. Other Selling and Administrative Expenses, paid in the month they are incurred, include Advertising $4,000 per month, Utilities $1,000 per month, Salaries $7,000 per month. Depreciation is $2,000 per month.
- The company pays interest on its long-term debt each month. Interest is equal to 1% of the balance of long-term debt at the beginning of the month.
- Income taxes are equal to 25% and taxes are paid the month after they are incurred. The company declared and paid a $1,000 dividend in January.
- The company requires a minimum cash balance of $15,000. If it must borrow funds, it must borrow in increments of $1,000. Any cash available in excess of the minimum cash balance will be used to pay down long-term debt. The company will either borrow funds or repay funds in a given month, but never both.
What are TOTAL INVENTORY PURCHASES for January?
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Question 4 of 475 Points What are TOTAL CASH PAYMENTS for SELLING & ADMINISTRATIVE EXPENSES for January?
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Question 5 of 475 Points What is the CONTRIBUTION MARGIN in January?
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Question 6 of 475 Points What is the balance of ACCOUNTS RECEIVABLE as of January 31, 2020?
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Question 7 of 475 Points What is balance of RETAINED EARNINGS as of January 31, 2020?
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Question 8 of 475 Points What is the balance of ACCOUNTS PAYABLE as of January 31, 2020?
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