The following information is available for Zetrov Company. The cash budget for March shows an ending bank
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The following information is available for Zetrov Company.
- The cash budget for March shows an ending bank loan of $19,500 and an ending cash balance of $63,350.
- The sales budget for March indicates sales of $139,000. Accounts receivable are expected to be 65% of the current-month sales.
- The merchandise purchases budget indicates that $90,900 in merchandise will be purchased on account in March. Purchases on account are paid 100% in the month following the purchase. Ending inventory for March is predicted to be 790 units at a cost of $40 each.
- The budgeted income statement for March shows net income of $49,900. Depreciation expense of $2,900 and $27,900 in income tax expense were used in computing net income for March. Accrued taxes will be paid in April.
- The balance sheet for February shows equipment of $82,100 with accumulated depreciation of $31,900, common stock of $34,500, and ending retained earnings of $9,900. There are no changes budgeted in the equipment or common stock accounts.
Prepare a budgeted balance sheet at the end of March.
Related Book For
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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