Prepare a budgeted balance sheet at March 31 using the following information from Zimmer Company. 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 1. 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.

Prepare a budgeted balance sheet at March 31 using the following information from Zimmer Company. 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 1. 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.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter4: Financial Planning And Forecasting

Section: Chapter Questions

Problem 4P

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