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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
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 helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
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 income and expenses.
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Transcribed Image Text: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.
Transcribed Image Text:Cash
Accounts receivable
Merchandise Inventory
Equipment
Less: Accumulated depreciation
Total assets
Budgeted Balance Sheet
As of March 31
Assets
Accounts payable
Income taxes payable
Accumulated depreciation
Total liabilities
GUIRRELE
Common stock
Retained earnings
Total Liabilities and Equity
Liabilities
Equity
X
$
84,000
47,000
89,000
10,000 X
47,000 X
25,000
56,000
$50,000
98,000
21,000
37,000
$206,000
146,000
81,000
$ 227,000
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