Merchandising: Budgeted balance sheet LO P4 The following information is available for Zetrov Company: a....
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Merchandising: Budgeted balance sheet LO P4 The following information is available for Zetrov Company: a. The cash budget for March shows an ending bank loan of $15.000 and an ending cash balance of $61,000 b. The sales budget for March indicates sales of $130.000. Accounts receivable are expected to be 65% of the current-month sales. c. The merchandise purchases budget indicates that $90,000 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 700 units at a cost of $35 each. d. The budgeted income statement for March shows net income of $49,000. Depreciation expense of $2,000 and $27,000 in income tax expense were used in computing net income for March. Accrued taxes in April. e. The balance sheet for February shows equipment of $83 000 with accumulated depreciation of $31,000 common stock of $30,000, and ending retained earnings of $9,000. There are no changes budgeted in the equipment or common stock accounts. Prepare a budgeted balance sheet for March
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