Dorah, the sole stockholder of Marshall Inc., runs a home-cleaning service in the suburb of a large city. Her balance sheet as at March 31, 2019 is as follows: Assets Cash Marshall Inc. Balance Sheet As at March 31, 2019 Accounts Receivable Equipment Accumulated Depreciation Total Assets Liabilities Accounts Payable Notes Payable Total Liabilities $4,900 $16,900 $9,800 $-2,000 $29,600 $4,300 $12,300 $16,600 Stockholder's Equity $13,000 Total Liabilities & Stockholder's Equity $29,600 In the upcoming year, Dorah expects the following events to occur: • Total revenues of $26,000 and total expenses of $13,210 • 100% of accounts receivable from the prior year will be collected in the following year • Credit sales will represent 43% of revenues for the year • 100% of accounts payable owing from 2019 will be paid off in 2020 • By the end of March, 2020, Marshall will owe its suppliers $3,600 • No principal payments will be made on the bank loan during 2019 • Purchase of new equipment for $2,800. The entire purchase will be financed through a bank loan • Expect to have a cash balance of $23,300 at the end of fiscal 2020 • Depreciate assets by $590 during 2020

Dorah, the sole stockholder of Marshall Inc., runs a home-cleaning service in the suburb of a large city. Her balance sheet as at March 31, 2019 is as follows: Assets Cash Marshall Inc. Balance Sheet As at March 31, 2019 Accounts Receivable Equipment Accumulated Depreciation Total Assets Liabilities Accounts Payable Notes Payable Total Liabilities $4,900 $16,900 $9,800 $-2,000 $29,600 $4,300 $12,300 $16,600 Stockholder's Equity $13,000 Total Liabilities & Stockholder's Equity $29,600 In the upcoming year, Dorah expects the following events to occur: • Total revenues of $26,000 and total expenses of $13,210 • 100% of accounts receivable from the prior year will be collected in the following year • Credit sales will represent 43% of revenues for the year • 100% of accounts payable owing from 2019 will be paid off in 2020 • By the end of March, 2020, Marshall will owe its suppliers $3,600 • No principal payments will be made on the bank loan during 2019 • Purchase of new equipment for $2,800. The entire purchase will be financed through a bank loan • Expect to have a cash balance of $23,300 at the end of fiscal 2020 • Depreciate assets by $590 during 2020

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Description: Do not give answer in image Do not enter dollar signs or commas in the input boxes.Use the negative sign for negative values.Prepare Marshall Inc.'s budgeted balance sheet as at March 31, 2020.AssetsCashAccounts ReceivableMarshall Inc.Budgeted Balanc

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 10MC

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