Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Write a business letter to the CEO analyzing your companys budgeted financial statements (and state your recommendations. I'm looking for ratios specifically and how I

"Write a business letter to the CEO analyzing your companys budgeted financial statements (and state your recommendations." I'm looking for ratios specifically and how I could explain this information, comparing which sections like which month was more profitable, etc.

image text in transcribed

image text in transcribed

The management of Zigby Manufacturing prepared the following balance sheet for March 31. Assets Cash Accounts receivable Raw materials inventory Finished goods inventory Equipment Less: Accumulated depreciation ZIGBY MANUFACTURING Balance Sheet March 31 Liabilities and Equity $ 48,000 Liabilities 423, 150 Accounts payable 87,900 Loan payable 383,760 Long-term note payable Equity 458,000 Common stock Retained earnings $ 1,400,810 Total liabilities and equity $ 187,200 20,000 500,000 $ 707,200 $ 616,000 158,000 343,000 350, 610 693,610 $ 1,400,810 Total assets To prepare a master budget for April, May, and June, management gathers the following information. ZIGBY MANUFACTURING Budgeted Balance Sheet June 30 Assets Cash $ 117,817 Accounts receivable 462,210 96,000 Raw materials inventory Finished goods inventory 383,760 Equipment $ 716,000 716,000 Total assets $ 1,775,787 Liabilities and Equity Liabilities Accounts payable $ 195,300 Taxes payable 58,036 Long-term note payable 500,000 Equity Common stock 343,000 Retained earnings 440,391 Total Liabilities and Equity $ 1,536,727

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions