60.1K

Verified Solution

Link Copied!

Required information [The following information applies to the questions displayed below.) The following trial balance was drawn from the records of Havel Company as of October 1, year 2 $ 16,000 60,000 40,000 200,000 Cash Accounts receivable Inventory Store equipment Accumulated depreciation Accounts payable Line of credit loan Common stock Retained earnings Total $ 76,800 72.000 100,000 50 17,200 $316,000 $316,000 b. Supply the missing information in the following pro forma income statement and balance sheet for the fourth quarter of year 2. The statements are prepared as of December 31, year 2. Required information Complete this question by entering your answers in the tabs below. Income Statement Balance Sheet Supply the missing information in the following pro forma income statement for the fourth quarter of year 2. The statement is prepared as of December 31, year 2. Income Statement Sales revenue Cost of goods sold Gross margin Operating expenses Operating income Interest expense Not income 5 357.480 183,290 (2.530) 190,760 Balance Sheet Income Statement Supply the missing information in the following pro forma balance sheet for the fourth quarter of year 2. The statement is prepared as of December 31, year 2. (Amounts to be deducted should be indicated by a minus sign.) $ 9,760 $ 200,000 Balance Sheet Assets Cash Accounts receivable Inventory Store equipment Accumulated depreciation store equipment Book value of equipment Total assets Liabilities Accounts payable Utilities payable Sales commissions payable Line of credit Equity Common stock Retained earnings Total liabilities and equity 118,400 314.984 $ 23,936 50.000 $ 314,984 Required information The following information applies to the questions displayed below. The following trial balance was drawn from the records of Havel Company as of October 1, year 2. $ 16,000 60,000 40,000 200,000 Cash Accounts receivable Inventory Store equipment Accumulated depreciation Recounts payable Line of credit loan Common stock Retained earnings Totals 5 76,800 72,000 100,000 50,000 17,200 $316,000 5316,000 c. Indicate whether Havel will need to borrow money during October by preparing October's Cash Budget. (Negative amounts should be indicated by a minus sign.) Cash Budget for October 0 Cash available Less: Payments 0 Total budgeted payments Cash surplus (shortage) Will Havel need to borrow money during October? The following trial balance was drawn from the records of Havel Company as of October 1, year 2. $ 16,000 60,000 40,000 200,000 Cash Accounts receivable Inventory Store equipment Recumulated depreciation Accounts payable Line of credit loan Common stock Retained earnings Total $ 75,800 72.000 100,000 50,000 17,200 $316,000 $316,000 b. Supply the missing information in the following pro forma income statement and balance sheet for the fourth quarter of year 2. The statements are prepared as of December 31, year 2 Required information The following information applies to the questions displayed below.) The following trial balance was drawn from the records of Havel Company as of October 1, year 2. $ 16,000 60.000 40,000 200.000 Canh Accounts receivable Inventory Store equipment Accumulated depreciation Accounts payable Line of credit loan Common stock retained earning Total 5.76,800 72,000 100,000 50,000 12,200 5316,000 $316,000 C. Indicate whether Havel will need to borrow money during October by preparing October's Cash Budget. (Negative amounts should be indicated by a minus sign.) Required information The following information applies to the questions displayed below.) The following trial balance was drawn from the records of Havel Company as of October 1, year 2. $ 16,000 60,000 40,000 200,000 Cash Accounts receivable Inventory Store equipment Accumulated depreciation Mocounts payable Line of credit loan Common stock Retained earnings Totals $ 76,800 72,000 100,000 50,000 17,200 $316,000 $316,000 Required a-1. Based on the following information, prepare a sales budget and a schedule of cash receipts for October, November, and December . Sales for October are expected to be $180,000, consisting of $40,000 in cash and $140,000 on credit. The company expects sales to increase at the rate of 10 percent per month. All accounts receivable are collected in the month following the sale a-2. Based on the following information, prepare a purchases budget and a schedule of cash payments for inventory purchases for October, November, and December . The inventory balance as of October 1 was $40,000. Cost of goods sold for October is expected to be $72,000. Cost of goods sold is expected to increase by 10 percent per month. The company expects to maintain a minimum ending inventory equal to 20 percent of the current month cost of goods sold. Seventy-five percent of accounts payable is paid in the month that the purchase occurs; the remaining 25 percent is paid in the following month. a-3. Based on the following selling and administrative expenses budgeted for October, prepare a selling and administrative expenses budget for October, November, and December Sales commissions (108 Increase per month) Supplies expense (109 Increase per month) Utilities (tied) Depreciation on store equipment (fixed) Salary expense (fixed) Rent (fixed) Miscellaneous (fixed) $ 7,200 1.800 2,200 1,600 34,000 5,000 1,000 Cash payments for sales commissions and utilities are made in the month following the one in which the expense is incurred. Supplies and other operating expenses are paid in cash in the month in which they are incurred Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Req A3 Based on the following information, prepare a sales budget and a schedule of cash receipts for October, November, and December. Sales for October are expected to be $180,000, consisting of $40,000 in cash and $140,000 on credit. The company expects sales to increase at the rate of 10 percent per month. All accounts receivable are collected in the month following the sale October November December Sales Budget Cash sales $ 40,000 $ 44,000 $ 48,400 Sales on account 140,000 154,000 169 400 Total budgeted sales $ 180,000 $ 198,000 $ 217,800 Schedule of Cash Receipts Cash sales $ 40,000 $ 44,000 $ 48,400 Collections from accounts receivable 60,000 140,000 154.000 Total cash collections $ 100,000 $ 184,000 $ 202,400 Reg A1 Reg A2 Reg A3 Based on the following information, prepare a purchases budget and a schedule of cash payments for inventory purchases for October, November, and December. The inventory balance as of October 1 was $40,000. Cost of goods sold for October is expected to be $72,000. Cost of goods sold is expected to increase by 10 percent per month. The company expects to maintain a minimum ending inventory equal to 20 percent of the current month cost of goods sold, Seventy-five percent of accounts payable is paid in the month that the purchase occurs; the remaining 25 percent is paid in the following month. Show less Inventory Purchases Budget October November December Budgeted cost of goods sold 72,000 $ 79.2007 s 87,120 Plus Desired ending inventory 14.400 15,840 17,424 Inventory needed 86,400 95,040 104,544 Less: Beginning inventory 40.000 14.400 15,840 Required purchases (on account) $ 46.400 $ 80,540 88,704 Schedule of Cash Payments Payment of current months' accounts payable $ 34,800 $ 60.480 $ 66,528 Payment for prior month's accounts payable 72,000 11,600 20.160 Total budgeted payments for inventory $ 106,800 $ 72,080 $ 86,688

Answer & Explanation Solved by verified expert

See Answer