Inc. Balance Sheet March 31 Assets Cash $ 83,000 Accounts receivable Inventory 126,000 69,750 220,000 Plant and equipment, net of depreciation Total assets $ 498,750 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings $ 81,000 348,000 69,750 $ 498,750 Total liabilities and stockholders' equity accountants have made the following estimates: Sales for April, May, June, and July will be $310,000, $330,000, $320,000, and $340,000, respectively. All sales are on credit. Each month's credit sales are collected 35% in the month of sale and 65% in the month sale. All of the accounts receivable at March 31 will be collected in April. Each month's ending inventory must equal 30% of next month's cost of goods sold. The cost of goods sold is The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60 following the purchase. All of the accounts payable at March 31 are related to previous merchandise purchase paid in April.

Inc. Balance Sheet March 31 Assets Cash $ 83,000 Accounts receivable Inventory 126,000 69,750 220,000 Plant and equipment, net of depreciation Total assets $ 498,750 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings $ 81,000 348,000 69,750 $ 498,750 Total liabilities and stockholders' equity accountants have made the following estimates: Sales for April, May, June, and July will be $310,000, $330,000, $320,000, and $340,000, respectively. All sales are on credit. Each month's credit sales are collected 35% in the month of sale and 65% in the month sale. All of the accounts receivable at March 31 will be collected in April. Each month's ending inventory must equal 30% of next month's cost of goods sold. The cost of goods sold is The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60 following the purchase. All of the accounts payable at March 31 are related to previous merchandise purchase paid in April.

Name: ▶Inc. is a retailer. Its accountants are preparing the company's 2nd
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Description: ▶Inc. is a retailer. Its accountants are preparing the company's 2nd quarter master budget. The company hasthe following balance sheet as of March 31.Inc.Balance SheetMarch 31AssetsCash$ 83,000Accounts receivableInventory126,00069,750220,000Plant an

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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