Unit Sales April May June July August September collections from customers: Cash Accounts receivable Merchandise inventory Fixed assets (net) Total assets Accounts payable (merchandise) Loans Payable Owner's equity Total liabilities & equity Other Data Average selling price Average purchase cost per unit Desired ending inventory (% of next month's unit sales) Collections from customers: Collected in month of sale Collected in month after sale Collected two months after sale Projected cash payments: Variable expenses Fixed expenses (per month) Depreciation ?? Data Section - PROVIDED BY THE CLIENT 15,000 10,000 16,000 14,000 15,000 12,000 $8,000 107,800 52,800 530,000 $698,600 $250 $90 60% 20% 60% 20% 30% of sales Sales are expected to increase by 5% every month. The total sales for the Fiscal Year 2022 is 15% higher than the total sales for 2021. $10,000 Fixed Assets $74,800 $400,000 5 year loan, 12% interest taken out on May 31, 2021, paid yearly every June 1, Face Amount. 223,800 Discount on Notes Payable 77,012.05 Deducted from the Accounts Receivable Balance. $698,600 Bad Debt Expense is 3% of sales Land Building Office Equipment Machinery Cost 150,000.00 205,000.00 10 year depreciation, bought on May 31, 2021, Work Ethics Gen. Mdse uses the Declining Balance Metho 100,000.00 20% are acquired on May 31, 2021 20% are acquired on August 31, 2021 20% are acquired on October 31, 2021 20% are acquired on December 31, 2021 20% are acquired on March 31, 2021 Use the Straight Line Method (5 years) 75,000.00 5 year 1 INSTRUCTIONS: Prepare a 2-year comparative financial statements including the notes to FS for the Fiscal Year May 2021 and 2022 for the data provided above. All relevant assumptions for 2022 are also applicable to 2021. :)
Unit Sales April May June July August September collections from customers: Cash Accounts receivable Merchandise inventory Fixed assets (net) Total assets Accounts payable (merchandise) Loans Payable Owner's equity Total liabilities & equity Other Data Average selling price Average purchase cost per unit Desired ending inventory (% of next month's unit sales) Collections from customers: Collected in month of sale Collected in month after sale Collected two months after sale Projected cash payments: Variable expenses Fixed expenses (per month) Depreciation ?? Data Section - PROVIDED BY THE CLIENT 15,000 10,000 16,000 14,000 15,000 12,000 $8,000 107,800 52,800 530,000 $698,600 $250 $90 60% 20% 60% 20% 30% of sales Sales are expected to increase by 5% every month. The total sales for the Fiscal Year 2022 is 15% higher than the total sales for 2021. $10,000 Fixed Assets $74,800 $400,000 5 year loan, 12% interest taken out on May 31, 2021, paid yearly every June 1, Face Amount. 223,800 Discount on Notes Payable 77,012.05 Deducted from the Accounts Receivable Balance. $698,600 Bad Debt Expense is 3% of sales Land Building Office Equipment Machinery Cost 150,000.00 205,000.00 10 year depreciation, bought on May 31, 2021, Work Ethics Gen. Mdse uses the Declining Balance Metho 100,000.00 20% are acquired on May 31, 2021 20% are acquired on August 31, 2021 20% are acquired on October 31, 2021 20% are acquired on December 31, 2021 20% are acquired on March 31, 2021 Use the Straight Line Method (5 years) 75,000.00 5 year 1 INSTRUCTIONS: Prepare a 2-year comparative financial statements including the notes to FS for the Fiscal Year May 2021 and 2022 for the data provided above. All relevant assumptions for 2022 are also applicable to 2021. :)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Data Section - PROVIDED BY THE CLIENT
Unit Sales
Sales are expected to increase by 5% every month.
The total sales for the Fiscal Year 2022 is 15% higher than the total sales for 2021.
April
May
15,000
10,000
June
16,000
July
August
September
14,000
15,000
Fixed Assets
Cost
12,000
Land
150,000.00
Building
205,000.00 10 year depreciation, bought on May 31, 2021, Work Ethics Gen. Mdse uses the Declining Balance Method
collections from customers:
Office Equipment
100,000.00 20% are acquired on May 31, 2021
Cash
$8.000
20% are acquired on August 31, 2021
Accounts receivable
107,800
20% are acquired on October 31, 2021
Merchandise inventory
52,800
20% are acquired on December 31, 2021
530,000
$698,600
Fixed assets (net)
20% are acquired on March 31, 2021
Total assets
Use the Straight Line Method (5 years)
Machinery
75.000.00 5 year
Accounts payable (merchandise)
Loans Payable
Owner's equity
Total liabilities & equity
$74,800
$400,000 5 year loan, 12% interest taken out on May 31, 2021, paid yearly every June 1, Face Amount.
223,800 Discount on Notes Payable
$698,600 Bad Debt Expense is 3% of sales
77,012.05 Deducted from the Accounts Receivable Balance.
Other Data
Average selling price
Average purchase cost per unit
Desired ending inventory
(% of next month's unit sales)
Collections from customers:
$250
$90
60%
Collected in month of sale
20%
Collected in month after sale
60%
Collected two months after sale
20%
Projected cash payments:
Variable expenses
30% of sales
$10,000
Fixed expenses (per month)
Depreciation
??
INSTRUCTIONS:
Prepare a 2-year comparative financial statements including the notes to FS for the Fiscal Year May 2021 and 2022 for the data provided above.
All relevant assumptions for 2022 are also applicable to 2021. :)
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