Learning Objectives 3,4 P22-50B Completing a comprehensive budgeting problem-manufacturing company 3rd Qtr. DM purchases $15,600 4th Qtr. total cash pmts. (before interest) $60,810 The Gavin Tire Company manufactures racing tires for bicycles. Gavin sells tires for $70 each. Gavin is planning for the next year by developing a master budget by quarters. Gavin's balance sheet for December 31, 2018, follows: GAVIN TIRE COMPANY Balance Sheet December 31, 2018 Assets Current Assets: as Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets $ 20,000 30,000 3,000 10,800 $63,800 Property, Plant, and Equipment Equipment Less: Accumulated Depreciation 168,000 (39,000) 129,000 Total Assets S192,800 Liabilities Current Liabilities: Accounts Payable $ 16,000 Stockholders' Equity Common Stock, no par Retained Earnings 130,000 46,800 Total Stockholders' Equity Total Liabilities and Stockholders' Equity 176,800 S 192,800 Learning Objectives 3,4 P22-50B Completing a comprehensive budgeting problem-manufacturing company 3rd Qtr. DM purchases $15,600 4th Qtr. total cash pmts. (before interest) $60,810 The Gavin Tire Company manufactures racing tires for bicycles. Gavin sells tires for $70 each. Gavin is planning for the next year by developing a master budget by quarters. Gavin's balance sheet for December 31, 2018, follows: GAVIN TIRE COMPANY Balance Sheet December 31, 2018 Assets Current Assets: as Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets $ 20,000 30,000 3,000 10,800 $63,800 Property, Plant, and Equipment Equipment Less: Accumulated Depreciation 168,000 (39,000) 129,000 Total Assets S192,800 Liabilities Current Liabilities: Accounts Payable $ 16,000 Stockholders' Equity Common Stock, no par Retained Earnings 130,000 46,800 Total Stockholders' Equity Total Liabilities and Stockholders' Equity 176,800 S 192,800