The management of Mecca Copy, a photocopying center located on University Avenue, has compiled thefollowing data to use in preparing its budgeted balance sheet for next year:Ending BalancesCash ..................................................................... ?Accounts receivable ............................................. $8,100Supplies inventory ................................................ $3,200Equipment ............................................................ $34,000Accumulated depreciation .................................... $16,000Accounts payable ................................................. $1,800Common stock ...................................................... $5,000Retained earnings ................................................ ?The beginning balance of retained earnings was $28,000, net income is budgeted to be $11,500, and dividends are budgeted to be $4,800.Required:Prepare the company’s budgeted balance sheet.
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.
The management of Mecca Copy, a photocopying center located on University Avenue, has compiled the
following data to use in preparing its budgeted
Ending Balances
Cash ..................................................................... ?
Supplies inventory ................................................ $3,200
Equipment ............................................................ $34,000
Accumulated
Accounts payable ................................................. $1,800
Common stock ...................................................... $5,000
The beginning balance of retained earnings was $28,000, net income is budgeted to be $11,500, and dividends are budgeted to be $4,800.
Required:
Prepare the company’s budgeted balance sheet.
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