Problem 5 Budgeting: Confab Company provides a partial balance sheet at 12/31/20x1which shows the following: Cash.....

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Problem 5 Budgeting: Confab Company provides a partial balance sheet at 12/31/20x1which shows the following: Cash.. Accounts Receivable. Inventory Total Current Assets $ 9,000 0 58,000 $67,000 Also, the Accounts Payable balance at 12/31/20x1 is zero. The following information is available concerning expected activities for the year 20X2: The sales forecast shows expected sales of $375,000, 85% of which is expected to be collected during 20X2. The inventory purchases budget shows expected purchases of $260,000, 90% of which is expected to be paid during 20X2. Other operating expenses for 20X2 include Salaries $63,000, Rental Costs $18,000, and Depreciation Expense $12,000. All cash operating expenses for 20X2 will be paid in 20X2. The cost of goods sold is 65% of sales. Required: (a) Prepare a proforma income statement for 20X2. (b) Prepare the current assets section of the proforma balance sheet for the end of 20X2. Problem 5 Budgeting: Confab Company provides a partial balance sheet at 12/31/20x1which shows the following: Cash.. Accounts Receivable. Inventory Total Current Assets $ 9,000 0 58,000 $67,000 Also, the Accounts Payable balance at 12/31/20x1 is zero. The following information is available concerning expected activities for the year 20X2: The sales forecast shows expected sales of $375,000, 85% of which is expected to be collected during 20X2. The inventory purchases budget shows expected purchases of $260,000, 90% of which is expected to be paid during 20X2. Other operating expenses for 20X2 include Salaries $63,000, Rental Costs $18,000, and Depreciation Expense $12,000. All cash operating expenses for 20X2 will be paid in 20X2. The cost of goods sold is 65% of sales. Required: (a) Prepare a proforma income statement for 20X2. (b) Prepare the current assets section of the proforma balance sheet for the end of 20X2.

Answer rating: 100% (QA)

a Confab Company Proforma Income Statement For the Year Ending December 31 20X2 Sales 375... View the full answer