The Management of FastCopy Inc, a Photocopying center located on Morris Ave, In Union NJ, completed the
Question:
The Management of FastCopy Inc, a Photocopying center located on Morris Ave, In Union NJ, completed the following data for use in preparing its budgeted balance sheet for the next year:
Ending Balances
Cash ?
Accounts Recievable $8,100
Supplies Inventory $3,200
Equipment $34,000
Accumulated Depreciation $16,000
Accounts Payable $1,800
Common Stock $5,000
Retained 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.
A properly titled and formatted balance sheet for FastCopy, Inc. Grading will be applied to proper formatting and accuracy of results.
Also a 2nd properly formatted balance sheet with net income budgeted to be $87,500 and dividends are budgeted to be $10,000. Consider the second balance sheet you created and provide an explanation of the likely other balance accounts that would change (increase/decrease/remain the same) in response to such a significant increase in net income.
A properly formatted balance sheet would include the proper heading and the Assets / Liabilities / Shareholders Equity appearing in the proper columns with column totals that equal as per the accounting equation: Assets = Liabilities and Shareholder Equity.
Managerial Accounting
ISBN: 978-0078111006
14th edition
Authors: Ray Garrison, Eric Noreen and Peter Brewer