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zubka84 [21]
2 years ago
6

The following information is available for Zetrov Company. The cash budget for March shows an ending bank loan of $19,000 and an

ending cash balance of $59,700. The sales budget for March indicates sales of $138,000. Accounts receivable are expected to be 70% of the current-month sales. The merchandise purchases budget indicates that $90,800 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 780 units at a cost of $35 each. The budgeted income statement for March shows net income of $49,800. Depreciation expense of $2,800 and $27,800 in income tax expense were used in computing net income for March. Accrued taxes will be paid in April. The balance sheet for February shows equipment of $82,200 with accumulated depreciation of $31,800, common stock of $34,000, and ending retained earnings of $9,800. There are no changes budgeted in the equipment or common stock accounts.
Prepare a budgeted balance sheet for March.
Business
1 answer:
Alja [10]2 years ago
6 0

Answer:

Zetrov Company

Budgeted Balance Sheet for the month of March

Assets

Current assets:

Cash                                     $59,700

Accounts receivable             96,600

Inventory                                27,300   $183,600

Long-term assets:

Equipment                          $82,200

Accumulated depreciation (34,600)    $47,600

Total assets                                         $231,200

Liabilities and Equity:

Current liabilities:

Bank loan payable             $19,000

Accounts payable               90,800

Income tax payable            27,800   $137,600

Equity:

Common stock                 $34,000

Retained earnings             59,600    $93,600

Total liabilities and equity                $231,200

Explanation:

a) Data and Calculations:

Ending Bank Loan = $19,000

Ending cash balance = $59,700

Accounts receivable = $96,600 ($138,000 * 70%)

Accounts payable = $90,800

Ending inventory = $27,300 (780 * $35)

Net income = $49,800

Income tax payable = $27,800

Equipment at cost = $82,200

Accumulated depreciation, beginning $31,800

Depreciation for the month =                   2,800

Accumulated depreciation, ending =  $34,600

Retained earnings, beginning = $9,800

Net income                                  49,800

Retained earnings, ending      $59,600

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Assume the marginal propensity to consume is 0.75. What will happen if government spending increases by $100 billion
bazaltina [42]

What will happen if government spending increases by $100 billion is:

Real output will increase by a maximum of $400 billion.

<h3>Government spending</h3>

Using this formula

Multiplier=1/(1-MPC)

Where:

MPC=Marginal propensity to consume =0.75

Let plug in the formula

Multiplier=1/(1-0.75)

Multiplier=1/0.25

Multiplier=4

Increase in GDP= Government spending ×4

Increase in GDP=$400

Inconclusion what will happen if government spending increases by $100 billion is: Real output will increase by a maximum of $400 billion.

Learn more about government spending here:brainly.com/question/25125137

8 0
2 years ago
A manufacturing company that produces a single product has provided the following data concerning its most recent month of opera
ZanzabumX [31]

Answer:

$71,240

Explanation:

The computation of the total gross margin under absorption costing is shown below:

As we know that

Gross Margin = Sales - Variable Manufacturing Cost - Fixed Manufacturing Overhead For Units Sold

Sales (2,740 units × $131) $358,940

Less Manufacturing Costs  

Direct Materials (2,740 units × $44) $120,560

Direct Labor (2,740 units × $19) $52,060

Variable Manufacturing Overhead (2,740 units × $13) $35,620

Fixed Manufacturing Overhead ($85,260 ÷ 2,740 units ÷ 2,940 units) $79,460

Gross Margin                         $71,240

We simply applied the above formula

6 0
3 years ago
Marquis Company uses a weighted-average perpetual inventory system.
timama [110]

Answer:

The amount of the cost of goods sold for this sale is $98.4

Explanation:

Marquis Company uses a weighted-average perpetual inventory system

August 2, 22 units were purchased at $3 per unit,

Total cost = $3 x 22 = $66

Average cost per unit: $3

August 18, 27 units were purchased at $5 per unit

Total inventory = $66 + $5 x 27 = $201

Average cost per unit = $201/(22+27) = $4.1

August 29, 24 units were sold

Cost of goods sold = 24 x $4.1 = $98.4

8 0
3 years ago
Whiteside Corporation issues $500,000 of 9% bonds, due in 10 years, with interest payable semiannually. At the time of issue, th
umka2103 [35]

Answer:

$468,844 approx.

Explanation:

<u>Assumption</u>: <u>Since the question is incomplete, with the available information it has been construed that calculation of bond price is required and the question has been solved accordingl</u>y.

The price of a bond is the present value of future cash receipts it generates to the investor in the form of interest stream and principal stream.

B_{0} = \frac{i}{(1\ +\ ytm)^{1} }\ +\ \frac{i}{(1\ +\ ytm)^{2} }\ +.....+\frac{i}{(1\ +\ ytm)^{n} } \ + \frac{RV}{(1\ +\ ytm)^{n} }

wherein,

B_{0} = price of bond as on today

i = annual coupon payments

ytm= investor's expectation of interest or market rate of interest on similar bonds

RV = Redemption value of such bonds assumed to be the face value

n = term to maturity

B_{0} = \frac{22500}{(1\ +\ .05)^{1} }\ +\ \frac{22500}{(1\ +\ .05)^{2} }\ +.....+\frac{22500}{(1\ +\ .05)^{20} } \ + \frac{500000}{(1\ +\ .05)^{20} }

B_{0}= 12.46221  × 22,500 + 0.376889 × 22,500 = 280,399.725 + 188444.5

B_{0} = $468,844 approx

This is the present value of the bond which is lower than it's face value because market rate of return of similar bonds is higher than the coupon rate of payment by Westside Corporation.

6 0
3 years ago
On April 1, Sangvikar Company had the following balances in its inventory accounts:
noname [10]

Answer:

a.

DR Raw Material Inventory                             $30,000

CR Accounts Payable                                                     $30,000

b.

DR Work in Process Inventory                          $33,900

CR Raw Material Inventory                                                $33,900

Working

= Job 114 + Job 115 + Job 116

= 16,500 + 12,400 + 5,000 = $33,900

c.

DR Work in Process                                            $‭7,430‬

CR Wages Payable                                                             $‭7,430‬

Working

= (150 * 15) + (220 * 17) + (80 * 18)

= $‭7,430‬

d.

DR Work in Process                                              $‭4,458‬

CR Manufacturing Overhead                                              $‭4,458‬

Working

Overhead as % of Direct labor cost using Job 115 = Applied Overhead / Direct labor = 936/1,560 = 60%

Manufacturing Overhead = Overhead rate * Direct labor

= 60% * 7,430 = $‭4,458‬

e.

DR Manufacturing Overhead                                     $4,765

CR Accounts Payable                                                              $4,765

f.

DR Finished Goods                                                    $‭23,520‬

CR Work in Process                                                                   $‭23,520‬

Job 115 costs = Beginning + Material + Labor + Overhead

= (2,640 + 1,560 + 936) + 12,400 + (220 * 17) + (220 * 17 * 60%)

= $‭23,520‬

g.

DR Cost of Goods sold                                               $‭23,520‬

CR Finished Goods                                                                     $‭23,520‬

DR Accounts Receivable                                            $‭32,928‬

CR Cost of Goods sold                                                              $‭32,928‬

Working

= ‭23,520‬ * 140%

= $‭32,928‬

4 0
3 years ago
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