Horses Company projected the following January 31 balance sheet: Cash Accounts receivable Merchandise Inventory Assets Plant...

 

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Horses Company projected the following January 31 balance sheet: Cash Accounts receivable Merchandise Inventory Assets Plant assets (net of accumulated deprecation**) Total Assets Accumulated Depreciation Additional information: $20,000 69,120 104,800 Accounts Payable Common Stock 70,000 $263,920 Retained earnings 123,520 Total Liabilities and Stockholders' Equity $263,920 $140,400 46,000 77,520 $120,000 January Sales Expected sales for February Expected sales for March All Sales are made on account. The monthly collection pattern: Cost of Goods Sold is Purchases each month are made to meet All purchases are paid in full in the month following purchase. Dividends of Monthly Selling and administrative expenses are Selling and Administrative expenses that use cash are paid monthly $144,000 $150,000 $160,000 52% Collected in month of sale 48% Collected in month after sale 63% of sales 59% of the current months sales 41% of the next months project sales $2,000 Declared and paid February $20,000 of which $3,000 is depreciation Required: Use cell referencing of information above to calculate the following and make sure you label calculations, so I can follow your end results. 1. What were January budgeted sales? 2. What will be the budgeted cash collection for February? 3. What will the Merchandise Inventory balance for February 28? 4. What will be the budgeted net income for February? 5. What will the budgeted balance in retained earning account at February 28? 6. What will be the cash available at February 28? Solution: 1. What will be the budgeted cash collection for February? 2. What will the Merchandise Inventory balance for February 28? 3. What will be the budgeted net income for February? 4. What will the budgeted balance in retained earning account at February 28? 5. What will be the cash available at February 28? Horses Company projected the following January 31 balance sheet: Cash Accounts receivable Merchandise Inventory Assets Plant assets (net of accumulated deprecation**) Total Assets Accumulated Depreciation Additional information: $20,000 69,120 104,800 Accounts Payable Common Stock 70,000 $263,920 Retained earnings 123,520 Total Liabilities and Stockholders' Equity $263,920 $140,400 46,000 77,520 $120,000 January Sales Expected sales for February Expected sales for March All Sales are made on account. The monthly collection pattern: Cost of Goods Sold is Purchases each month are made to meet All purchases are paid in full in the month following purchase. Dividends of Monthly Selling and administrative expenses are Selling and Administrative expenses that use cash are paid monthly $144,000 $150,000 $160,000 52% Collected in month of sale 48% Collected in month after sale 63% of sales 59% of the current months sales 41% of the next months project sales $2,000 Declared and paid February $20,000 of which $3,000 is depreciation Required: Use cell referencing of information above to calculate the following and make sure you label calculations, so I can follow your end results. 1. What were January budgeted sales? 2. What will be the budgeted cash collection for February? 3. What will the Merchandise Inventory balance for February 28? 4. What will be the budgeted net income for February? 5. What will the budgeted balance in retained earning account at February 28? 6. What will be the cash available at February 28? Solution: 1. What will be the budgeted cash collection for February? 2. What will the Merchandise Inventory balance for February 28? 3. What will be the budgeted net income for February? 4. What will the budgeted balance in retained earning account at February 28? 5. What will be the cash available at February 28?