Maj Co. has provided balance sheet information for the year just ended, December 31, 2018:...
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Maj Co. has provided balance sheet information for the year just ended, December 31, 2018: Cash Accounts receivable Building Accumulated depreciation Total assets Accounts payable Long-Term Loan Total liabilities Shareholders' Equity Total Liabilities & Shareholders' Equity $40,000 50,000 100,000 (40,000) $150,000 $30,000 70,000 100,000 50,000 $150,000 The company has also provided the following information and estimates for 2019: Revenue is expected to be $200,000 and net income is expected to be $40,000. The company will pay $30,000 of cash dividends in the upcoming year. Accounts receivable from the previous year will all be collected in the current year. 35% of revenue will remain uncollected at the end of the year. 100% of accounts payable owing at December 31, 2018 will be paid in the current year. The company will owe $15,000 to suppliers at December 31, 2018. The company will make the required principal payment of 10,000 on the bank loan during the year. The company expects to have a cash balance of $30,000 at the end of 2019. Yearly depreciation expense of the building is $15,000. Required: Prepare a budgeted balance sheet for the year ended December 31, 2019
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