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 $20,000 and an ending cash balance of $75,000. b. The sales budget for March shows sales of $140,000. Accounts receivable at the end of March are budgeted to be 60% of March sales. c. The merchandise purchases budget shows that $91,000 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 800 units at a cost of $35 each. e. Income taxes payable of $28,000 are budgeted at the end of March. f. Accounting records at the end of March show budgeted equipment of $82,000 with accumulated depreciation of $35,000. g. Common stock of $35,000 and retained earnings of $60,000 are budgeted at the end of March.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 $20,000 and an ending cash balance of $75,000.
b. The sales budget for March shows sales of $140,000. Accounts receivable at the end of March are budgeted to be 60% of March
sales.
c. The merchandise purchases budget shows that $91,000 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 800 units at a cost of $35 each.
e. Income taxes payable of $28,000 are budgeted at the end of March.
f. Accounting records at the end of March show budgeted equipment of $82,000 with accumulated depreciation of $35,000.
g. Common stock of $35,000 and retained earnings of $60,000 are budgeted at the end of March.
ZIMMER COMPANY
Budgeted Balance Sheet
As of March 31
$
0
0
0
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 $20,000 and an ending cash balance of $75,000. b. The sales budget for March shows sales of $140,000. Accounts receivable at the end of March are budgeted to be 60% of March sales. c. The merchandise purchases budget shows that $91,000 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 800 units at a cost of $35 each. e. Income taxes payable of $28,000 are budgeted at the end of March. f. Accounting records at the end of March show budgeted equipment of $82,000 with accumulated depreciation of $35,000. g. Common stock of $35,000 and retained earnings of $60,000 are budgeted at the end of March. ZIMMER COMPANY Budgeted Balance Sheet As of March 31 $ 0 0 0
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