Prepare a balance sheet as of March 31. (Be sure to list the assets and liabilit
ID: 2369457 • Letter: P
Question
Prepare a balance sheet as of March 31. (Be sure to list the assets and liabilities in order of their liquidity. Round your answers to 2 decimal places.) Completing a Master Budget [LO2, LO4, LO7, LO8, LO9, LO10] The following data relate to the operations of pi canuy Corporation, a wholesale distributor of consumer goods: The gross margin is 30% of sales. (In otherwords, cost of goods sold is 70% of sales.) Actual and budgeted sales data are as follows: The gross margin is 30% of sales, (In other words, cost of goods sold is 70% of sales.) Actual and budgeted sales data are as follows: Sales are 40% for cash and 60% on credit Credit sales are collected in the month following sale. The accounts receivable at December 31 are the result of December credit sales,. Each month's ending inventory should equal 20% of the following month's budgeted cost of goods sold. One-quarter of a month's inventory purchases is paid for in the month of purchase; the otherthree-quarters is paid for in the following month. The accounts payable at December 31 are the result of December purchases of inventory. Monthly expenses are as follows: commissions, $14,330; rent, $2,100; other expenses (excluding depreciation), 8% of sales. Assume that these expenses are paid monthly. Depreciation is $2,840 for the quarter and includes depreciation on new assets acquired during the quarter. Equipment will be acquired for cash: $3,000 in January and $8,450 in February. Management would like to maintain a minimum cash balance of $5,000 at the end of each month. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month, up to a total loan balance of $50,000, The interest rate on these loans is 1% per month, and for simplicity, we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter. Complete the following: (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Round the "Schedule of Expected Cash Disbursements - Merchandise Purchases" answers to 2 decimal places.) *$74,000 sales times 70% = $51,800. $88,400 times 70% times 20% = $12,376. Complete the following schedule: Complete the following cash budget: (Input all amounts as positive values except cash deficiency, repayments and interest which should be indicated by a minus sign. Round your answers to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required. Total Financing should be indicated with a minus sign when the company is repaying amounts that were previously borrowed.)Explanation / Answer
Hi,
Please find the answer as follows:
Cash = 5145
Inventory = 8876
Total Current Assets = 5145 + 8876 + 53040 = 67061
Fixed Assets = 119100 +3000 + 8450 - 2840 = 127710
Total Assets = 67061 + 127710 = 194771
Accounts Payables = 58380*3/4 = 43785
Bank Loan Payable = 4000
Retained Earnings = 194771 - (43785 + 4000 + 100000) = 46986
Total Liabilities = 194771
Thanks.