a. The cash budget for March shows an ending loan balance of $10,000 and an ending cash balance of $50,000. b. The sales budget for March shows sales of $140,000. Accounts receivable at the end of March are budgeted to be 70% of March sales. c. The merchandise purchases budget shows that $89,000 in merchandise will be purchased on credit in March. Purchases on credit are paid 100% in the month following the purchase. d. Ending merchandise inventory for March is budgeted to be 600 units at a cost of $35 each. e. Income taxes payable of $26,000 are budgeted at the end of March. f. Accounting records at the end of March show budgeted equipment of $84,000 with accumulated depreciation of $47,000. g. Common stock of $25,000 and retained earnings of $56,000 are budgeted at the end of March. Cash Accounts receivable Merchandise Inventory Equipment Less: Accumulated depreciation Equipment, net Total assets Accounts payable Loan payable Income taxes payable Total liabilities ZIMMER COMPANY Budgeted Balance Sheet As of March 31 Common stock Retained earnings Total Liabilities and Equity $ 50,000 98,000

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It…

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future…