Goldberg Company is a retail sporting goods store that uses an accrual accounting system. Facts regarding...

 

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Goldberg Company is a retail sporting goods store that uses an accrual accounting system. Facts regarding its operations follow: Sales are budgeted at $340,000 for December and $310,000 for January, terms 1/eom, n/60. • Collections are expected to be 50% in the month of sale and 48% in the month following the sale. Two percent of sales are expected to be uncollectible and recorded in an allowance account at the end of the month of sale. Bad debts expense is included as part of operating expenses. • Gross margin is 30% of gross sales. • All accounts receivable are from credit sales. Bad debts are written off against the allowance account at the end of the month following the month of sale. Goldberg desires to have 80% of the merchandise for the following month's sales on hand at the end of each month. Payment for merchandise is made in the month following the month of purchase. • Other monthly operating expenses to be paid in cash total $27,200. • Annual depreciation is $240,000, one-twelfth of which is reflected as part of monthly operating expenses. . . Goldberg Company's statement of financial position at the close of business on November 30 follows: Assets Cash GOLDBERG COMPANY Statement of Financial Position November 30, 2022 Accounts receivable (net of $4,000 allowance for doubtful accounts) Inventory. Property, plant, and equipment (net of $690,000 accumulated depreciation) Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and equity $ 29,000 78,000 190,400 1,070,000 $ 1,367,400 $ 149,000 800,000 418,400 $ 1,367,400 Required: 1. What is the total of budgeted cash collections for December? 2. How much is the book value of accounts receivable at the end of December? 3. How much is the income (loss) before income taxes for December? 4. What is the projected balance in inventory on December 31, 2022? 5. What are budgeted purchases of inventory for December? 6. What is the projected balance in accounts payable on December 31, 2022? (For all requirements, Do not round intermediate calculations.) 1. Budgeted cash collections-December 2. Net accounts receivable-December 31st 3. 4. Budgeted inventory, December 31st 5. Budgeted purchases during December 6. Budgeted accounts payable, December 31st Goldberg Company is a retail sporting goods store that uses an accrual accounting system. Facts regarding its operations follow: Sales are budgeted at $340,000 for December and $310,000 for January, terms 1/eom, n/60. • Collections are expected to be 50% in the month of sale and 48% in the month following the sale. Two percent of sales are expected to be uncollectible and recorded in an allowance account at the end of the month of sale. Bad debts expense is included as part of operating expenses. • Gross margin is 30% of gross sales. • All accounts receivable are from credit sales. Bad debts are written off against the allowance account at the end of the month following the month of sale. Goldberg desires to have 80% of the merchandise for the following month's sales on hand at the end of each month. Payment for merchandise is made in the month following the month of purchase. • Other monthly operating expenses to be paid in cash total $27,200. • Annual depreciation is $240,000, one-twelfth of which is reflected as part of monthly operating expenses. . . Goldberg Company's statement of financial position at the close of business on November 30 follows: Assets Cash GOLDBERG COMPANY Statement of Financial Position November 30, 2022 Accounts receivable (net of $4,000 allowance for doubtful accounts) Inventory. Property, plant, and equipment (net of $690,000 accumulated depreciation) Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and equity $ 29,000 78,000 190,400 1,070,000 $ 1,367,400 $ 149,000 800,000 418,400 $ 1,367,400 Required: 1. What is the total of budgeted cash collections for December? 2. How much is the book value of accounts receivable at the end of December? 3. How much is the income (loss) before income taxes for December? 4. What is the projected balance in inventory on December 31, 2022? 5. What are budgeted purchases of inventory for December? 6. What is the projected balance in accounts payable on December 31, 2022? (For all requirements, Do not round intermediate calculations.) 1. Budgeted cash collections-December 2. Net accounts receivable-December 31st 3. 4. Budgeted inventory, December 31st 5. Budgeted purchases during December 6. Budgeted accounts payable, December 31st

Answer rating: 100% (QA)

Lets go through each requirement step by step 1 Budgeted cash collections December Collections are expected to be 50 in the month of sale and 48 in th... View the full answer