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. 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 ZIMMER COMPANY Budgeted Balance Sheet As of March 31 Assets $ 57,750 78,650 18,300 0
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. 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 ZIMMER COMPANY Budgeted Balance Sheet As of March 31 Assets $ 57,750 78,650 18,300 0
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.
Question
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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.
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
ZIMMER COMPANY
Budgeted Balance Sheet
As of March 31
Assets
$ 57,750
78,650
18,300
0
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