Managerial Accounting: Tools for Business Decision Making
7th Edition
ISBN: 9781118334331
Author: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Publisher: WILEY
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Chapter 9, Problem 9.6AP
To determine
Budgeted Statement of Cost of Goods Sold:
The budgeted statement of cost of goods sold is a type of the operating budget. This budget shows the
The budgeted income statement is a statement which shows the financial performance of a company. This statement shows the revenue earned and the expenses incurred in a particular financial period. This statement shows all the operating as well as non-operating activities of a business.
Budgeted
The budgeted retained earnings statement is the statement shows the forecast for the earnings which will be with the company after the dividend are paid and hence forecast of the profit of the company can be determined.
Budgeted Classified
The budgeted classified balance sheet is the forecasted projection of the balance sheet which will be in the coming future periods. The classified balance sheet shows the assets, liabilities, and equity in a classified manner and divided into sub-categories.
To prepare: The budgeted statement of cost of goods sold, budgeted multi-step income statement, budgeted retained earnings statement and budgeted classified balance sheet.
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Comparative Condensed Statements of Financial Position
December 31
2016
2015
Assets
Property, plant, and equipment (net)
OMR 94,500
OMR 90,000
Intangibles
33,500
40,000
Current assets
70,000
80,000
Total assets
OMR 198,000
OMR 210,000
Equity and liabilities
Shareholders' equity
OMR 16,200
OMR 12,000
Non-current liabilities
141,000
150,000
Current liabilities
40,800
48,000
Total equity and liabilities
OMR 198,000
OMR 210,000
a. Prepare a horizontal analysis of the statements of financial position data for Al Buraimi
Company starting with 2015.
b. Prepare a vertical analysis of the statements of financial position data for Al Buraimi Company
for 2016.
Current assets
Cash
Accounts
receivable
Inventory
Total
Net plant and
equipment
Total assets
Current assets
Cash
Assets
Fixed assets
2017
$ 10,200
30,200
74,600
$ 115,000
Accounts receivable
Inventory
Total
$285,000
$400,000
Assets
2018
Net plant and equipment
$ 13,200
38,640
87,120
$ 138,960
$ 341,040
$480,000
$
$
$
2017
Current liabilities
For each account on this company's balance sheet, show the change in the account
during 2018 and note whether this change was a source or use of cash. (If there is no
action select "None" from the dropdown options. Leave no cells blank - be certain to
enter "0" wherever required. A negative answer should be indicated by a minus sign.)
Accounts payable
Notes payable
Total
Long-term debt
Owners' equity
Common stock and paid-in
Retained earnings
surplus
Liabilities and Owners' Equity
2017
Total
10,2003
30,200
74,600
115,000
Total liabilities and owners'
equity
285,000
Sources/Uses
$
$
$
$ 46,000
27,800
$ 73,800
$ 40,000
$ 60,000
226,200
$286,200…
The condensed financial statements of Marks Company for the years 2017-2018 are presented below:
Marks CompanyComparative Balance SheetsAs of December 31, 2017 and 2018
2018
2017
Cash
$404,000
$155,000
Accounts receivable (net)
356,000
300,000
Inventories
375,000
339,000
Plant and equipment
1,830,000
1,121,000
Accumulated depreciation
(260,000
)
(193,000
)
$2,705,000
$1,722,000
Accounts payable
$339,000
$164,000
Dividends payable
-0-
45,000
Bonds payable
405,000
-0-
Common stock ($10 par)
1,521,000
1,230,000
Retained earnings
440,000
283,000
$2,705,000
$1,722,000
Additional data:
Market value of stock at 12/31/18 is $80 per share.
Marks sold 30,000 shares of common stock at par on July 1, 2018.
Marks CompanyCondensed…
Chapter 9 Solutions
Managerial Accounting: Tools for Business Decision Making
Ch. 9 - Prob. 1QCh. 9 - Prob. 2QCh. 9 - Prob. 3QCh. 9 - (a) Accounting plays a relatively unimportant role...Ch. 9 - What criteria are helpful in determining the...Ch. 9 - Lori Wilkins maintains that the only difference...Ch. 9 - Prob. 7QCh. 9 - What is budgetary slack? What incentive do...Ch. 9 - Prob. 9QCh. 9 - What budget is the starting point in preparing the...
Ch. 9 - The production budget shows both unit production...Ch. 9 - Alou Company has 20,000 beginning finished goods...Ch. 9 - In preparing the direct materials budget for Quan...Ch. 9 - The production budget of Justus Company calls for...Ch. 9 - Ortiz Companys manufacturing overhead budget shows...Ch. 9 - Everly Companys variable selling and...Ch. 9 - For Goody Company, the budgeted cost for one unit...Ch. 9 - Indicate the supporting schedules used in...Ch. 9 - Identify the three sections of a cash budget. What...Ch. 9 - Noterman Company has credit sales of 600,000 in...Ch. 9 - Prob. 21QCh. 9 - Prob. 22QCh. 9 - Maris Company uses the following budgets: balance...Ch. 9 - Paige Company estimates that unit sales will be...Ch. 9 - Sales budget data for Paige Company are given in...Ch. 9 - Perine Company has 2,000 pounds of raw materials...Ch. 9 - For Gundy Company, units to be produced are 5,000...Ch. 9 - For Roche Inc., variable manufacturing overhead...Ch. 9 - Elbert Company classifies its selling and...Ch. 9 - North Company has completed all of its operating...Ch. 9 - Kaspar Industries expects credit sales for...Ch. 9 - Moore Wholesalers is preparing its merchandise...Ch. 9 - Use this list of terms to complete the sentences...Ch. 9 - Pargo Company is preparing its master budget for...Ch. 9 - Pargo Company is preparing its budgeted income...Ch. 9 - Batista Company management wants to maintain a...Ch. 9 - Zeller Company estimates that 2017 sales will be...Ch. 9 - Trusler Company has always done some planning for...Ch. 9 - Edington Electronics Inc. produces and sells two...Ch. 9 - Thome and Crede, CPAs, are preparing their service...Ch. 9 - Turney Company produces and sells automobile...Ch. 9 - DeWitt Industries has adopted the following...Ch. 9 - On January 1, 2017, the Hardin Company budget...Ch. 9 - Rensing Ltd. estimates sales for the second...Ch. 9 - Fuqua Companys sales budget projects unit sales of...Ch. 9 - Rodriguez, Inc., is preparing its direct labor...Ch. 9 - Lowell Company makes and sells artistic frames for...Ch. 9 - Atlanta Company is preparing its manufacturing...Ch. 9 - Kirkland Company combines its operating expenses...Ch. 9 - Fultz Company has accumulated the following budget...Ch. 9 - Danner Company expects to have a cash balance of...Ch. 9 - Deitz Corporation is projecting a cash balance of...Ch. 9 - The controller of Trenshaw Company wants to...Ch. 9 - Nieto Companys budgeted sales and direct materials...Ch. 9 - Green Landscaping Inc. is preparing its budget for...Ch. 9 - Pletcher Denial Clinic is a medium-sized dental...Ch. 9 - In May 2017, the budget committee of Grand Stores...Ch. 9 - Emeric and Ellies Painting Service estimates that...Ch. 9 - PROBLEMS: SET A Cook Farm Supply Company...Ch. 9 - Deleon Inc. is preparing its annual budgets for...Ch. 9 - Hill Industries had sales in 2016 of 6,800,000 and...Ch. 9 - Colter Company prepares monthly cash budgets....Ch. 9 - The budget committee of Suppar Company collects...Ch. 9 - Prob. 9.6APCh. 9 - CURRENT DESIGNS Diane Buswell is preparing the...Ch. 9 - MANAGEMENT DECISION-MAKING Decision-Making Across...Ch. 9 - Elliot Hesse Inc. manufactures ergonomic devices...Ch. 9 - Real-World Focus Information regarding many...Ch. 9 - Prob. 9.4BYPCh. 9 - Broadening Your Ethics Case BYP9-5 You are an...Ch. 9 - All About You In order to get your personal...Ch. 9 - Prob. 9.7BYP
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