The balance sheet for the beginning of the year is given below: Thruster Corporation Balance sheet...
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The balance sheet for the beginning of the year is given below: Thruster Corporation Balance sheet Sept 30 2018 Assets Liabilities Cash 25,000 Accounts Payable 30,000 Line of Credit $ 20,000 Accounts receivable Inventory 2,500 Long term debt 57,500 total liabilities 150,000 Current Assets 170,000 Stock · 80,000 200,000 Retained earnings 1otai liadiiibes $ 257,500 and equity Capital Assets 7,500 Total Assets $ 257,500 Additional Information • The surfboards sell for $800 each. 25% of the sales are cash sales and the remainder are accounts receivable paid the following month. The cost per board is $500 these costs are all paid the month following production Fixed costs are $132,000 paid in equal amounts each month Taxes are 25% you may assume the amount calculated on your income statement is paid in April The corporation pays a 20% dividend in May The company would like to maintain a minimum cash balance of $5,000 and will borrow on its line of credit when necessary and repay the line of credit as soon as they are able Required - 1. Complete the income statement and calculate the amount to be transferred to retained earnings. The beginning inventory is @ 500 per board. 2. Complete the schedules of collections and payments Complete the cash budget and balance sheet Bonus - use a formula to calculate the required borrowing and repayments. The formula should be able to recognize whether there will be borrowings or repayments - an if function perhaps. :x v fx B. D. Beginning Ending Inventory Month Inventory Production Sales Inventory cost October 42 25 22 $ 11,000 November 22 42 15 49 24,500 December 49 42 10 81 40,500 81 10 113 56,500 January February 42 113 42 10 145 72,500 March 145 42 15 172 86,000 April May 172 42 25 189 94,500 189 42 55 176 88,000 June 176 42 70 148 74,000 July 148 42 120 70 35,000 August 70 42 80 32 16,000 September 32 42 65 9 4,500 The balance sheet for the beginning of the year is given below: Thruster Corporation Balance sheet Sept 30 2018 Assets Liabilities Cash 25,000 Accounts Payable 30,000 Line of Credit $ 20,000 Accounts receivable Inventory 2,500 Long term debt 57,500 total liabilities 150,000 Current Assets 170,000 Stock · 80,000 200,000 Retained earnings 1otai liadiiibes $ 257,500 and equity Capital Assets 7,500 Total Assets $ 257,500 Additional Information • The surfboards sell for $800 each. 25% of the sales are cash sales and the remainder are accounts receivable paid the following month. The cost per board is $500 these costs are all paid the month following production Fixed costs are $132,000 paid in equal amounts each month Taxes are 25% you may assume the amount calculated on your income statement is paid in April The corporation pays a 20% dividend in May The company would like to maintain a minimum cash balance of $5,000 and will borrow on its line of credit when necessary and repay the line of credit as soon as they are able Required - 1. Complete the income statement and calculate the amount to be transferred to retained earnings. The beginning inventory is @ 500 per board. 2. Complete the schedules of collections and payments Complete the cash budget and balance sheet Bonus - use a formula to calculate the required borrowing and repayments. The formula should be able to recognize whether there will be borrowings or repayments - an if function perhaps. :x v fx B. D. Beginning Ending Inventory Month Inventory Production Sales Inventory cost October 42 25 22 $ 11,000 November 22 42 15 49 24,500 December 49 42 10 81 40,500 81 10 113 56,500 January February 42 113 42 10 145 72,500 March 145 42 15 172 86,000 April May 172 42 25 189 94,500 189 42 55 176 88,000 June 176 42 70 148 74,000 July 148 42 120 70 35,000 August 70 42 80 32 16,000 September 32 42 65 9 4,500
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Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-0078110894
6th Edition
Authors: Edmonds, Tsay, olds
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