As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 2009,
Factory output and sales for 2009 are expected to total 215,000 units of product, which are to be sold at $4.60 per unit. The quantities and costs of the inventories at December 31, 2009, are expected to remain unchanged from the balances at the beginning of the year.
Budget estimates of manufacturing costs and operating expenses for the year are summarized as follows:
Balances of accounts receivable, prepaid expenses, and accounts payable at the end of the year are not expected to differ significantly from the beginning balances. Federal income tax of $80,000 on 2009 taxable income will be paid during 2009. Regular quarterly cash dividends of $0.80 a share are expected to be declared and paid in March, June, September, and December. It is anticipated that fixed assets will be purchased for $60,000 cash in May.
1. Prepare a budgeted income statement for 2009.
2. Prepare a budgeted balance sheet as of December 31, 2009, with supportingcalculations.
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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