The Sunstate Bank has asked Dell Printing Co. for a budgeted balance sheet for the year ended December 31, 2022. The following information is available: 1.+ The cash budget shows an expected cash balance of $75,000 at December 31, 2022. 2-+ The 2022 sales budget shows total annual sales of $800,000. All sales are made on account and accounts receivable at December 31, 2022 are expected to be 10% of annual sales. 3.+ The merchandise purchases budget shows budgeted cost of goods sold for 2022 of $600,000 and ending merchandise inventory of $95,000. 20% of the ending inventory is expected to have not yet been paid at December 31, 2022. 4.- The December 31, 2021 balance sheet includes the following balances: Equipment $294,000, Accumulated Depreciation $122,000, Common Stock $270,000, and Retained Earnings $48,000. 5.+ The budgeted income statement for 2022 includes the following: depreciation on equipment $15,000, federal income taxes $21,000, and net income $49,000. The income taxes will not be paid until 2022. 6.-In 2016, management does not expect to purchase additional equipment or to declare any dividends. It does expect to pay all operating expenses, other than depreciation, in cash. Instructions Prepare an unclassified budgeted balance sheet at December 31, 2022.
The Sunstate Bank has asked Dell Printing Co. for a budgeted balance sheet for the year ended December 31, 2022. The following information is available: 1.+ The cash budget shows an expected cash balance of $75,000 at December 31, 2022. 2-+ The 2022 sales budget shows total annual sales of $800,000. All sales are made on account and accounts receivable at December 31, 2022 are expected to be 10% of annual sales. 3.+ The merchandise purchases budget shows budgeted cost of goods sold for 2022 of $600,000 and ending merchandise inventory of $95,000. 20% of the ending inventory is expected to have not yet been paid at December 31, 2022. 4.- The December 31, 2021 balance sheet includes the following balances: Equipment $294,000, Accumulated Depreciation $122,000, Common Stock $270,000, and Retained Earnings $48,000. 5.+ The budgeted income statement for 2022 includes the following: depreciation on equipment $15,000, federal income taxes $21,000, and net income $49,000. The income taxes will not be paid until 2022. 6.-In 2016, management does not expect to purchase additional equipment or to declare any dividends. It does expect to pay all operating expenses, other than depreciation, in cash. Instructions Prepare an unclassified budgeted balance sheet at December 31, 2022.
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
Transcribed Image Text:HW 2022.1.3.
The Sunstate Bank has asked Dell Printing Co. for a budgeted balance sheet for the year
ended December 31, 2022. The following information is available:
1.+The cash budget shows an expected cash balance of $75,000 at December 31, 2022.
2- The 2022 sales budget shows total annual sales of $800,000. All sales are made on
account and accounts receivable at December 31, 2022 are expected to be 10% of
annual sales.
3.+ The merchandise purchases budget shows budgeted cost of goods sold for 2022 of
$600,000 and ending merchandise inventory of $95,000. 20% of the ending inventory is
expected to have not yet been paid at December 31, 2022.
4.-The December 31, 2021 balance sheet includes the following balances: Equipment
$294,000, Accumulated Depreciation $122,000, Common Stock $270,000, and Retained
Earnings $48,000.
5.+ The budgeted income statement for 2022 includes the following: depreciation on
equipment $15,000, federal income taxes $21,000, and net income $49,000. The income
taxes will not be paid until 2022.
6.-In 2016, management does not expect to purchase additional equipment or to declare
any dividends. It does expect to pay all operating expenses, other than depreciation, in
cash.
Instructions
Prepare an unclassified budgeted balance sheet at December 31, 2022.
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