Wizo Wood Company Balance Sheet 31-Mar-2018 Assets$ Liabilities and Stockholder's Equity Cash 50,000.00 Accounts Payable 156,000.00 Accounts Receivable 175,000.00 Short-Term Notes Payable 12,000.00 Inventory 126,000.00 Total Current Liabilities 168,000.00 Total Current Assets 351,000.00 Long-Term note Payable 200,000.00 Equipment 480,000.00 Total Liabilities 368,000.00 Accumulated Depreciation (90,000.00)390,000.00Common Stock 235,000.00 Retained Earnings 138,000.00 Total Stockholders' Equity 373,000.00 Total Assets 741,000Total Liabilities and Equity 741,000.00

Additional Information

1. Sales for March total 10,000 Units. Each months sales are expected to exceed the prior months results by 5%. The products selling price is $25 per unit.
2. Company policy calls for a given months ending inventory to equal 80% of the next months expected unit sales. The March 31 inventory is 8,400 units, which complies with the policy. The purchase price is $15 per unit.
3. Sales representatives commissions are 12.5% of sales and are paid in the month of the sales. The sales managers monthly salary will be %3,500 in April and $4,000 per month thereafter.
4. Monthly general and administrative expenses include $8,000 administrative salaries, $5,000 depreciation, and 0.9% monthly interest on the long-term note payable.
5. The company expects 30% of sales to be cash and the remaining 70% on credit. Receivables are collected in full in the month following the sale (none is collected in the month of the sale).
6. All merchandise purchases are on credit, and no payables arise from any other transactions. One months purchases are fully paid in the next month.
7. The minimum ending cash balance for all months is $50,000. If necessary, the company borrows enough cash using a short-term note to reach the minimum. Short-term notes require an interest payment of 1% at each month-end (before any payment). If the ending cash balance exceeds the minimum, the excess will be applied to repaying the short-term notes payable balance.
8. Dividends of $100,000 are to be declared and paid in May.
9. No cash payments for income taxes are to be made during the second calendar quarter. Income taxes will be assessed at 35% in the quarter.
10. Equipment purchases of $55,000 are scheduled for June.

Required

Prepare the following budgets and other financial information as required:

1. Sales budget, including budget sales for July.
2. Purchases budget, the budgeted cost of goods sold for each month and quarter and the cost of June 30 budgeted inventory.
3. Selling expense budget and General and administrative budget
4. Expected cash receipts from customers and expected June 30 balance of accounts receivable.
5. Expected cash payments for purchases and expected June 30 balance of accounts payable.
6. Cash budget