xercise 20-33A (Algo) Merchandising: Budgeted balance sheet LO P4

Prepare a budgeted balance sheet at March 31 using the following information from Zimmer Company.

The cash budget for March shows an ending loan balance of $13,000 and an ending cash balance of $51,900.

The sales budget for March shows sales of $126,000. Accounts receivable at the end of March are budgeted to be 70% of March sales.

The merchandise purchases budget shows that $89,600 in merchandise will be purchased on credit in March. Purchases on credit are paid 100% in the month following the purchase.

Ending merchandise inventory for March is budgeted to be 660 units at a cost of $35 each.

Income taxes payable of $26,600 are budgeted at the end of March.

Accounting records at the end of March show budgeted equipment of $83,400 with accumulated depreciation of $32,200.

Common stock of $28,000 and retained earnings of $57,200 are budgeted at the end of March.