The following information is available from previously prepared budgets for the month of January January Cash $105,000 Accounts Receivable 149,000 Raw Materials Inventory 12,000 17,000 Finished Goods Inventory Equipment 128,000 Accumulated Depreciation Equipment 11,000 Accounts Payable 51,000 Common Stock 47,000 Previous period's ending balance in Retained Earnings is $104,000. No dividends are expected to be declared or paid OA. $198,000 B. $451,000 C. $302,000 OD. $349,000 CITS

The following information is available from previously prepared budgets for the month of January January Cash $105,000 Accounts Receivable 149,000 Raw Materials Inventory 12,000 17,000 Finished Goods Inventory Equipment 128,000 Accumulated Depreciation Equipment 11,000 Accounts Payable 51,000 Common Stock 47,000 Previous period's ending balance in Retained Earnings is $104,000. No dividends are expected to be declared or paid OA. $198,000 B. $451,000 C. $302,000 OD. $349,000 CITS

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Required Information TES-417 Inc. is a retailer. Its accountants are preparing the company's 2nd quarter master budget. The company has the following balance sheet as of March 31. TES-417 Inc. Balance Sheet March 31 Assets Cash $82,000 Accounts receivable Inventory 52,5ee 217,000 Plant and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable 78,000 Common stock 347.000 55,500 Retained earnings Total liabilities and stockholders' equity TES-417 accountants have made the following estimates: 1. Sales for April, May, June, and July will be $280,000, $300.000, $290,000, and $310,000, respectively. 2. All sales are on credit. Each month's credit sales are collected 35% in the month of sale and 65% in the month following the sale. All of the accounts receivable at March 31 will be collected in April. 3. Each month's ending inventory must equal 25% of next month's cost of goods sold. The cost of goods sold is 75% of sales. The company pays for 40%…
Knowledge Check 01 For the budget period ending December 31 of the current year, Aaron Corporation estimates its ending balances for cash as $4,000, accounts receivable as $16,000, finished goods Inventory as $12,000, and raw materials Inventory as $8,000. Invoices relating to raw materials in the amount of $14,000 are expected to be unpaid as of December 31. What is the amount of total current assets that will be reported on the budgeted balance sheet? O $20,000 O $26.000 O $32,000 O $40,000
am. 116.
Do not give solution in imagr
The following information pertains to Direct Projects Ltd for the three months ended 31 December 2020. Actual October Budgeted November Budgeted December Revenue (20% for cash and 80% on credit) 360 000,00 380 000,00 400 000,00 Purchases (10% for cash 90% on credit) 240 000,00 280 000,00 320 000,00 Salaries and wages paid 40 000,00 60 000,00 60 000,00 Cash expenses 24 000,00 28 000,00 32 000,00 Depreciation 2 000,00 2 000,00 2 000,00 Additional information: It is expected that debtors will settle their accounts as follows: 20% in the month of invoice 70% in the month after the month of invoice, and 5% in the second month after the month of invoice. The remaining 5% is usually written off as bad debts. Trade creditors are paid in the month after the purchases at a discount of 5%. 50% of the salaries and wages are weekly wages. Because wages…
Hancock Ltd which carries no month end inventory, has produced the following budgeted Statements of Profit or Loss. July August September October Sales 10,000 12,000 8,000 9,000 Purchases 4,000 4,800 3,200 3,600 Gross profit 6,000 7,200 4,800 5,400 Operating costs 4,000 4,000 4,000 4,000 Net profit 2,000 3,200 800 1,400 If the cash balance on 1st September is £3,000 and assuming that all customers take one month’s credit, that Hancock Ltd takes two months credit on purchases and that operating costs are paid immediately, what will be the expected cash balance at the end of October? £14,200 £6,200 £7,200 £8,200
Minden Company Balance Sheet April 30 Assets Cash Accounts receivable Inventory Buildings and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Note payable Common stock Retained earnings Total liabilities and stockholders' equity $ 12,700 66,500 48,500 229,000 $ 356,700 $ 67,500 19,100 180,000 90,100 $ 356,700 The company is in the process of preparing a budget for May and has assembled the following data: a. Sales are budgeted at $262,000 for May. Of these sales, $78,600 will be for cash; the remainder will be credit sales. One-half of a month's credit sales are collected in the month the sales are made, and the remainder is collected in the following month. All of the April 30 accounts receivable will be collected in May. b. Purchases of inventory are expected to total $196,000 during May. These purchases will all be on account. Forty percent of all purchases are paid for in the month of purchase; the remainder are paid in the…
None
None
Beginning cash balance as on March 1, P80,000. Cash receipts from sales P400,000 Budgeted cash disbursements for purchases 250,000. Budgeted cash disbursements for salaries 90,000. Cash repayment of bank loan 30,000. Prepare a cash budget for the month ended on March 31 for Spars Corp.
October November December Budgeted S&A Expenses Salary Expense 10,000 10,500 11,000 Sales Commissions 5% of Sales. 5,300 5,000 5,500 2,000 Insurance Expense 2,000 2,000 Rent 2,400 2,400 2,400 1,500 1,500 1,500 Depreciation on equipment Utilities 1,100 1,300 1,500 Total Operating Expenses 22,000 23, 200 23,700 Schedule of Cash Payments for S&A Expenses Salary Expense ? 10,500 ? 100% of Prior Month Sales 5,100 ? ? Commissions Insurance Expense 2,000 2,000 ? 2,000 2,400 Rent ? 100% of Prior Months Utilities 1,200 ? ? Expense Total Payments for S&A Expenses ? ? ? What is the total amount of S&A expenses for the fourth quarter that the company will report on its pro forma income statement? Multiple Choice $64,400 $68,900 $23,700 $63,900
Give me correct answer and explanation.