Developing a Master Budget for a Merchandising Organization

Peyton Department Store prepares budgets quarterly. The following information is available for use in planning the second quarter budgets for 2014.

Developing a Master Budget for a Merchandising Organization Peyton Department Store prepares budgets quarterly. The following information is available for use in planning the second quarter budgets for 2014 PEYTON DEPARTMENT STORE Balance Sheet March 31, 2014 Liabilities and Stockholders' Equity $26,000 17,000 2,000 40,000 Assets Cash Accounts receivable Inventory Prepaid Insurance Fixtures 3,000 Accounts payable 25,000 30,000 Rent payable Dividends payable 2,000 25,000 $85,000 Stockholders' equity Total liabilities and equity $85,000 Total assets Actual and forecasted sales for selected months in 2014 are as follows: onth Sales Reve January February March April May 60,000 50,000 40,000 50,000 60,000 70,000 90,000 80,000 une July August