Finished goods 115,875 Fixed assets $870,000 Less: Accumulated depreciation 136,335 733,665 Total assets $1.176.054 Liabilities and...

 

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Finished goods 115,875 Fixed assets $870,000 Less: Accumulated depreciation 136,335 733,665 Total assets $1.176.054 Liabilities and Equity Accounts payable Taxes payable $ 15,600 10,800 Interest payable Long-term debt Common stock Retained earnings Total liabilities and equity 750 150,000 300,000 698,904 $1.176.054 Use the balance sheet and the following information to prepare a cash budget for Tyva for June. Round to dollars. All sales are on account: 60% are collected in the month of the sale, 38% are collected the following month, and 2% are never collected and written off as bad debts. All purchases of materials are on account. Tyva pays for 80% of purchases in the month of purchase and 20% in the following month. All other costs are paid in the month incurred, including the declaration and payment of a $15,000 cash dividend in June. Tyva is making monthly interest payments of 0.5% (6% per year) on a $150,000 long-term loan. Tyva plans to pay the $10,800 of taxes owed as of May 31 in the month of June. Income tax expense for June is zero. 30% of processing, setup, and inspection costs and 10% of marketing and general administration and shipping costs are depreciation. 3. Prepare a budgeted income statement for June and a budgeted balance sheet for Tyva as of June 30, 2015. Finished goods 115,875 Fixed assets $870,000 Less: Accumulated depreciation 136,335 733,665 Total assets $1.176.054 Liabilities and Equity Accounts payable Taxes payable $ 15,600 10,800 Interest payable Long-term debt Common stock Retained earnings Total liabilities and equity 750 150,000 300,000 698,904 $1.176.054 Use the balance sheet and the following information to prepare a cash budget for Tyva for June. Round to dollars. All sales are on account: 60% are collected in the month of the sale, 38% are collected the following month, and 2% are never collected and written off as bad debts. All purchases of materials are on account. Tyva pays for 80% of purchases in the month of purchase and 20% in the following month. All other costs are paid in the month incurred, including the declaration and payment of a $15,000 cash dividend in June. Tyva is making monthly interest payments of 0.5% (6% per year) on a $150,000 long-term loan. Tyva plans to pay the $10,800 of taxes owed as of May 31 in the month of June. Income tax expense for June is zero. 30% of processing, setup, and inspection costs and 10% of marketing and general administration and shipping costs are depreciation. 3. Prepare a budgeted income statement for June and a budgeted balance sheet for Tyva as of June 30, 2015.

Answer rating: 100% (QA)

To prepare the cash budget for Tyva for June we need to calculate the cash inflows and outflows base... View the full answer