Second pic is example This document has a copy of the hardware store...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Second pic is example
This document has a copy of the hardware store example in "Understanding Finance Statements". Please prepare a balance sheet for the end of week 2,3,4,&5 (four balance sheets). 1) Assume that $25,000 of inventory will be sold in week 2 , and the gross margin is now 50%. (you might need to lookup how to calculate gross margin. I show it in the lecture) 2) Inventory sales increase by $15000 each week for the following three weeks. Sales proportion of credit vs. cash will be 60% cash vs 40% credit. For simplicity, assume sales are made on the first day of the week. You might need to replenish inventory at times. 2) Add a weekly expenses of $5,000 for wages and other expenses. This will be paid from the cash account at the end of each week. 3) The receivables will arrive 2 weeks after being sold. The inventory purchases (payables) are due 1 weeks after being purchased
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
