50.1K

Verified Solution

Link Copied!

Bryce Corporation data regarding the store's operations follow:

	Sales are budgeted at $320,000 for November, $340,000 for December, and $330,000 for January.
	Collections are expected to be 70% in the month of sale, 28% in the month following the sale, and 2% uncollectible.
	The cost of goods sold is 75% of sales.
	The company desires ending merchandise inventory to equal 75% of the following month's cost of goods sold. Payment for merchandise is made in the month following the purchase.
	Other monthly expenses to be paid in cash are $20,500.
	Monthly depreciation is $15,500.
	Ignore taxes.

Balance Sheet October 31
Assets
Cash	$	21,500
Accounts receivable (net of allowance for uncollectible accounts)		81,500
Merchandise Inventory		180,000
Property, plant and equipment (net of $655,000 accumulated depreciation)		1,170,000
Total assets	$	1,453,000
Liabilities and Stockholders Equity
Accounts payable	$	198,500
Common stock		780,000
Retained earnings		474,500
Total liabilities and stockholders equity	$	1,453,000

Required:

a.	Prepare a Schedule of Expected Cash Collections for November and December. (Omit the "$" sign in your response.)

Bryce Corporation Schedule of Expected Cash Collections
	November	December
Sales	$	$
Schedule of Expected Cash Collections
Accounts receivable	$
November sales		$
December sales
Total cash collections	$	$

b.	Prepare a Merchandise Purchases Budget for November and December. (Input all amounts as positive values. Do not round intermediate calculations. Omit the "$" sign in your response.)

Bryce Corporation Merchandise Purchases Budget
	November	December
Budgeted cost of goods sold	$	$
(Click to select)DeductAdd: (Click to select)Desired ending merchandising inventoryBeginning merchandise inventory
Total needs
(Click to select)AddDeduct: (Click to select)Desired ending merchandising inventoryBeginning merchandise inventory
Required purchase	$	$

c.	Prepare Cash Budgets for November and December. (Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values. Omit the "$" sign in your response.)

Bryce Corporation Cash Budget
	November	December
Cash disbursements for merchandise	$	$
Other monthly cash expenses
Total cash disbursements	$	$
Cash balance, beginning	$	$
Add cash receipts
Total cash available
Less cash disbursement
Excess (deficiency) of cash available over disbursements
Financing
Cash balance, ending	$	$

d.	Prepare Budgeted Income Statements for November and December. (Input all amounts as positive values. Omit the "$" sign in your response.)

Bryce Corporation Budgeted Income Statement
	November	December
(Click to select)SalesCost of goods soldGross marginDepreciationOther monthly expensesNet operating incomeBad debt expense	$	$
(Click to select)Gross marginSalesAccounts payableDepreciationCost of goods soldNet operating incomeOther monthly expenses
(Click to select)Other monthly expensesAccounts payableNet operating incomeDepreciationGross marginSalesCost of goods sold
(Click to select)Net operating incomeOther monthly expensesBad debt expenseSalesCost of goods soldGross marginDepreciation
(Click to select)SalesNet operating incomeBad debt expenseGross marginInventoryOther monthly expensesCost of goods sold
(Click to select)Cost of goods soldBad debt expenseDepreciationSalesGross marginInventoryNet operating income
(Click to select)Net operating incomeCost of goods soldBad debt expenseDepreciationGross marginSalesOther monthly expenses	$	$

e.	Prepare a Budgeted Balance Sheet for the end of December. (Be sure to enter your answers in the order of liquidity. Input all amounts as positive values. Omit the "$" sign in your response.)

Bryce Corporation Budgeted Balance Sheet December 31
Assets
(Click to select)InventoryAccounts receivableProperty, plant and equipmentCash
(Click to select)InventoryAccounts receivableCashProperty, plant and equipment
(Click to select)CashInventoryAccounts receivableProperty, plant and equipment
(Click to select)InventoryProperty, plant and equipmentCashAccounts receivable
Total assets
Liabilities and Stockholders Equity
(Click to select)Common stockCashRetained earningsAccounts payable
(Click to select)InventoryAccounts payableCashCommon stock
(Click to select)CashAccounts payableRetained earningsInventory
Total liabilities and stockholders equity

Answer & Explanation Solved by verified expert

See Answer