Coolce's balance sheet for 30 November follows. Use it and the following information to prepare a...

  

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Coolce's balance sheet for 30 November follows. Use it and the following information to prepare a cash budget for Cool-ice for December. • 80% of sales are on account, of which half are collected in the month of the sale, 49% are collected the following month and 1% are never collected and are written off as bad debts. . All purchases of materials are on account. Coolce pays for 70% of purchases in the month of purchase and 30% in the following month. . All other costs are paid in the month incurred. . Cool-Ice is making monthly interest payments of 1% (12% per year) on a $20 000 long-term loan. . Cool-Ice plans to pay the $500 of taxes owed as of 30 November in the month of December. Income tax expense for December is zero. 40% of processing and set-up costs, and 30% of marketing and general administration costs, are depreciation. Cool-Ice Balance sheet as of 30 November $587 $4 800 96 4 704 169 974 $190 000 Less: Accumulated depreciation 55 759 134 241 Total assets $140 675 $696 Liabilities and equity Accounts payable Taxes payable Interest payable 500 200 Long-term debt 20 000 Ordinary shares 10 000 Retained earnings 109 279 Total liabilities and equity $140 675 3. Prepare a budgeted income statement for December and a budgeted balance sheet for Cool-ice as of 31 December. PART B Prepare a 5 mins PPT presentations with voice overs to the board members on the financial strength of Cool-Ice especially in financing its long-term loan. Assets Cash Accounts receivable Less: Allowance for bad debts Inventories Direct materials Finished goods Fixed assets Coolce's balance sheet for 30 November follows. Use it and the following information to prepare a cash budget for Cool-ice for December. • 80% of sales are on account, of which half are collected in the month of the sale, 49% are collected the following month and 1% are never collected and are written off as bad debts. . All purchases of materials are on account. Coolce pays for 70% of purchases in the month of purchase and 30% in the following month. . All other costs are paid in the month incurred. . Cool-Ice is making monthly interest payments of 1% (12% per year) on a $20 000 long-term loan. . Cool-Ice plans to pay the $500 of taxes owed as of 30 November in the month of December. Income tax expense for December is zero. 40% of processing and set-up costs, and 30% of marketing and general administration costs, are depreciation. Cool-Ice Balance sheet as of 30 November $587 $4 800 96 4 704 169 974 $190 000 Less: Accumulated depreciation 55 759 134 241 Total assets $140 675 $696 Liabilities and equity Accounts payable Taxes payable Interest payable 500 200 Long-term debt 20 000 Ordinary shares 10 000 Retained earnings 109 279 Total liabilities and equity $140 675 3. Prepare a budgeted income statement for December and a budgeted balance sheet for Cool-ice as of 31 December. PART B Prepare a 5 mins PPT presentations with voice overs to the board members on the financial strength of Cool-Ice especially in financing its long-term loan. Assets Cash Accounts receivable Less: Allowance for bad debts Inventories Direct materials Finished goods Fixed assets

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Assuming that CoolIces sales for December are expected to be 60 000 the budgeted income statement an... View the full answer