Chapter 9, Problem 9.32AE

Budgeted balance sheet (Learning Objective 3)

Use the following information to prepare a budgeted balance sheet for Luda Corporation at March 31. Show computations for the cash and stockholders’ equity amounts.

1. a. March 31 inventory balance, $18,265
2. b. March payments for inventory, $4,600
3. c. March payments of accounts payable and accrued liabilities, $8,700
4. d. March 31 accounts payable balance, $1,700
5. e. February 28 furniture and fixtures balance, $34,600: accumulated depreciation balance, $29,860
6. f. February 28 stockholders’ equity, $30,000
7. g. March depreciation expense, $400
8. h. Cost of goods sold, 40% of sales
9. i. Other March expenses, including income tax, total $9,000; paid in cash
10. j. February 28 cash balance, $11,600
11. k. March budgeted sales, $12,300
12. l. March 31 accounts receivable balance, one-fourth of March sales
13. m. March cash receipts, $14,700