Sharpe Company has the following post-closing trial balance on December 31, 2016: Additional information: E (Click...

   

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Sharpe Company has the following post-closing trial balance on December 31, 2016: Additional information: E (Click the icon to view the post-closing trial balance.) a. Direct materials purchases are paid 60% in the quarter purchased and 40% in the next quarter. The company's accounting department has gathered the following budgeting information for the first quarter of 2017: b. Direct labor, manufacturing overhead, selling and administrative costs, and income tax expense are paid in the quarter incurred. E (Click the icon to view the budgeting information.) Read the requirements For the Quarter Ended March 31, 2017 Operating Activities: Cash receipts from customers 2$ 265,000 Cash payments for operating expenses 41000 Cash payments for income taxes Net cash provided by (used for) operating activities Investing Activities: 38000 Cash payments for equipment purchases Net cash used for investing activities Financing Activities: Net cash provided by (used for) financing activities Net increase (decrease) in cash Cash balance, January 1, 2017 Cash balance, March 31, 2017 Question Help Requirements Additional information: а. Direct materials purchases are paid 60% in the quarter purchased and 40% in the next quarter. 1. Prepare Sharpe Company's budgeted income statement for the first quarter of b. Direct labor manufacturing overhead selling and administrative costs and income tax expense are paid in the quarter for the first quarter of 2017: 2017. ind 2. Prepare Sharpe Company's budgeted statement of cash flows for the first quarter of 2017 Data Table Read the 3. Prepare Sharpe Company's budgeted balance sheet as of March 31, 2017. Hint: Use the budgeted statement of cash flows prepared in Requirement 2 to determine the Cash balance. Budgeted total sales, all on account 307,000 Data Table Budgeted direct materials to be purchased and used 35,000 Print Budgeted direct labor cost 10,500 Budgeted manufacturing overhead costs: Net cash provided by (used for) operating Sharpe Company Variable manufacturing overhead 2,400 Post-Closing Trial Balance Investing Activities: Depreciation 800 December 31, 2016 Cash payments for equipment purchases Insurance and property taxes 1,000 Асcount Debit Credit Net cash used for investing activities Budgeted cost of goods sold 71,200 Cash $ 45,000 Financing Activities: Budgeted selling and administrative expenses: Accounts Receivable 20,000 Net cash provided by (used for) financing Salaries expense 12,000 Raw Materials Inventory 11,000 Net increase (decrease) in cash Rent expense 4,000 Finished Goods Inventory 25,900 Cash balance, January 1, 2017 Insurance expense 1,800 Equipment 145,000 Cash balance, March 31, 2017 Depreciation expense 150 Accumulated Depreciation 10,000 Supplies expense 3,070 Accounts Payable 17,300 Enter any number in the edit fields and t Budgeted cash receipts from customers 265,000 Common Stock 85,000 Budgeted income tax expense 41,000 1 part remaining Retained Earnings 134,600 All Budgeted purchase and payment for capital expenditures (additional equipment) 38,000 $ 246,900 $ 246,900 Sharpe Company has the following post-closing trial balance on December 31, 2016: Additional information: E (Click the icon to view the post-closing trial balance.) a. Direct materials purchases are paid 60% in the quarter purchased and 40% in the next quarter. The company's accounting department has gathered the following budgeting information for the first quarter of 2017: b. Direct labor, manufacturing overhead, selling and administrative costs, and income tax expense are paid in the quarter incurred. E (Click the icon to view the budgeting information.) Read the requirements For the Quarter Ended March 31, 2017 Operating Activities: Cash receipts from customers 2$ 265,000 Cash payments for operating expenses 41000 Cash payments for income taxes Net cash provided by (used for) operating activities Investing Activities: 38000 Cash payments for equipment purchases Net cash used for investing activities Financing Activities: Net cash provided by (used for) financing activities Net increase (decrease) in cash Cash balance, January 1, 2017 Cash balance, March 31, 2017 Question Help Requirements Additional information: а. Direct materials purchases are paid 60% in the quarter purchased and 40% in the next quarter. 1. Prepare Sharpe Company's budgeted income statement for the first quarter of b. Direct labor manufacturing overhead selling and administrative costs and income tax expense are paid in the quarter for the first quarter of 2017: 2017. ind 2. Prepare Sharpe Company's budgeted statement of cash flows for the first quarter of 2017 Data Table Read the 3. Prepare Sharpe Company's budgeted balance sheet as of March 31, 2017. Hint: Use the budgeted statement of cash flows prepared in Requirement 2 to determine the Cash balance. Budgeted total sales, all on account 307,000 Data Table Budgeted direct materials to be purchased and used 35,000 Print Budgeted direct labor cost 10,500 Budgeted manufacturing overhead costs: Net cash provided by (used for) operating Sharpe Company Variable manufacturing overhead 2,400 Post-Closing Trial Balance Investing Activities: Depreciation 800 December 31, 2016 Cash payments for equipment purchases Insurance and property taxes 1,000 Асcount Debit Credit Net cash used for investing activities Budgeted cost of goods sold 71,200 Cash $ 45,000 Financing Activities: Budgeted selling and administrative expenses: Accounts Receivable 20,000 Net cash provided by (used for) financing Salaries expense 12,000 Raw Materials Inventory 11,000 Net increase (decrease) in cash Rent expense 4,000 Finished Goods Inventory 25,900 Cash balance, January 1, 2017 Insurance expense 1,800 Equipment 145,000 Cash balance, March 31, 2017 Depreciation expense 150 Accumulated Depreciation 10,000 Supplies expense 3,070 Accounts Payable 17,300 Enter any number in the edit fields and t Budgeted cash receipts from customers 265,000 Common Stock 85,000 Budgeted income tax expense 41,000 1 part remaining Retained Earnings 134,600 All Budgeted purchase and payment for capital expenditures (additional equipment) 38,000 $ 246,900 $ 246,900

Answer rating: 100% (QA)

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