Near the end of 2019, the management of Dimsdale Sports Co., a merchandising company, prepared the following estimated balance sheet for December 31, 2019.
DIMSDALE SPORTS COMPANY Estimated Balance Sheet December 31, 2019 |
||||||
Assets | ||||||
Cash | $ | 35,500 | ||||
Accounts receivable | 520,000 | |||||
Inventory | 100,000 | |||||
Total current assets | $ | 655,500 | ||||
Equipment | 540,000 | |||||
Less: Accumulated depreciation | 67,500 | |||||
Equipment, net | 472,500 | |||||
Total assets | $ | 1,128,500 | ||||
Liabilities and Equity | ||||||
Accounts payable | $ | 365,000 | ||||
Bank loan payable | 13,000 | |||||
Taxes payable (due 3/15/2020) | 89,000 | |||||
Total liabilities | $ | 467,000 | ||||
Common stock | 474,000 | |||||
Retained earnings | 187,000 | |||||
Total stockholders’ equity | 661,000 | |||||
Total liabilities and equity | $ | 1,128,000 | ||||
To prepare a master budget for January, February, and March of
2020, management gathers the following information.
Required:
Prepare a master budget for each of the first three months of 2020;
include the following component budgets.
1. Monthly sales budgets.
2. Monthly merchandise purchases budgets.
3. Monthly selling expense budgets.
4. Monthly general and administrative expense
budgets.
5. Monthly capital expenditures budgets.
6. Monthly cash budgets.
7. Budgeted income statement for the entire first
quarter (not for each month).
8. Budgeted balance sheet as of March 31,
2020.
Required:
Prepare a master budget for each of the first three months of 2020;
include the following component budgets.
1. Monthly sales budgets.
2. Monthly merchandise purchases budgets.
3. Monthly selling expense budgets.
4. Monthly general and administrative expense
budgets.
5. Monthly capital expenditures budgets.
6. Monthly cash budgets.
7. Budgeted income statement for the entire first
quarter (not for each month).
8. Budgeted balance sheet as of March 31,
2020.
Near the end of 2019, the management of Dimsdale Sports Co., a merchandising company, prepared the...
Near the end of 2019, the management of Dimsdale Sports Co., a merchandising company, prepared the following estimated balance sheet for December 31, 2019. DIMSDALE SPORTS COMPANY Estimated Balance Sheet December 31, 2019 Assets Cash $ 36,500 Accounts receivable 520,000 Inventory 105,000 Total current assets $ 661,500 Equipment 612,000 Less: Accumulated depreciation 76,500 Equipment, net 535,500 Total assets $ 1,197,000 Liabilities and Equity Accounts payable $ 375,000 Bank loan payable 12,000 Taxes payable (due 3/15/2020) 89,000 Total liabilities $ 476,000...
Near the end of 2019, the management of Dimsdale Sports Co., a merchandising company, prepared the following estimated balance sheet for December 31, 2019. DIMSDALE SPORTS COMPANY Estimated Balance Sheet December 31, 2019 Assets Cash $ 36,500 Accounts receivable 520,000 Inventory 105,000 Total current assets $ 661,500 Equipment 612,000 Less: Accumulated depreciation 76,500 Equipment, net 535,500 Total assets $ 1,197,000 Liabilities and Equity Accounts payable $ 375,000 Bank loan payable 12,000 Taxes payable (due 3/15/2020) 89,000 Total liabilities $ 476,000...
Near the end of 2019, the management of Dimsdale Sports Co., a merchandising company, prepared the following estimated balance sheet for December 31, 2019. DIMSDALE SPORTS COMPANY Estimated Balance Sheet December 31, 2019 Assets Cash $ 36,000 Accounts receivable 520,000 Inventory 100,000 Total current assets $ 656,000 Equipment 528,000 Less: Accumulated depreciation 66,000 Equipment, net 462,000 Total assets $ 1,118,000 Liabilities and Equity Accounts payable $ 365,000 Bank loan payable 14,000 Taxes payable (due 3/15/2020) 89,000 Total liabilities $ 468,000...
Near the end of 2019, the management of Dimsdale Sports Co., a merchandising company, prepared the following estimated balance sheet for December 31, 2019. DIMSDALE SPORTS COMPANY Estimated Balance Sheet December 31, 2019 Assets Cash $ 36,000 Accounts receivable 520,000 Inventory 135,000 Total current assets $ 691,000 Equipment 600,000 Less: Accumulated depreciation 75,000 Equipment, net 525,000 Total assets $ 1,216,000 Liabilities and Equity Accounts payable $ 340,000 Bank loan payable 12,000 Taxes payable (due 3/15/2020) 88,000 Total liabilities $ 440,000...
Near the end of 2019, the management of Dimsdale Sports Co., a merchandising company, prepared the following estimated balance sheet for December 31, 2019. DIMSDALE SPORTS COMPANY Estimated Balance Sheet December 31, 2019 Assets Cash $ 36,500 Accounts receivable 520,000 Inventory 105,000 Total current assets $ 661,500 Equipment 588,000 Less: Accumulated depreciation 73,500 Equipment, net 514,500 Total assets $ 1,176,000 Liabilities and Equity Accounts payable $ 380,000 Bank loan payable 12,000 Taxes payable (due 3/15/2020) 91,000 Total liabilities $ 483,000...
Near the end of 2019, the management of Dimsdale Sports Co., a merchandising company, prepared the following estimated balance sheet for December 31, 2019. DIMSDALE SPORTS COMPANY Estimated Balance Sheet December 31, 2019 Assets Cash $ 36,500 Accounts receivable 520,000 Inventory 105,000 Total current assets $ 661,500 Equipment 588,000 Less: Accumulated depreciation 73,500 Equipment, net 514,500 Total assets $ 1,176,000 Liabilities and Equity Accounts payable $ 380,000 Bank loan payable 12,000 Taxes payable (due 3/15/2020) 91,000 Total liabilities $ 483,000...
Near the end of 2019, the management of Dimsdale Sports Co., a merchandising company, prepared the following estimated balance sheet for December 31, 2019. DIMSDALE SPORTS COMPANY Estimated Balance Sheet December 31, 2019 Assets Cash $ 35,500 Accounts receivable 520,000 Inventory 90,000 Total current assets $ 645,500 Equipment 600,000 Less: Accumulated depreciation 75,000 Equipment, net 525,000 Total assets $ 1,170,500 Liabilities and Equity Accounts payable $ 350,000 Bank loan payable 12,000 Taxes payable (due 3/15/2020) 88,000 Total liabilities $ 450,000...
Near the end of 2019, the management of Dimsdale Sports Co., a merchandising company, prepared the following estimated balance sheet for December 31, 2019. DIMSDALE SPORTS COMPANY Estimated Balance Sheet December 31, 2019 Assets Cash $ 37,000 Accounts receivable 520,000 Inventory 100,000 Total current assets $ 657,000 Equipment 648,000 Less: Accumulated depreciation 81,000 Equipment, net 567,000 Total assets $ 1,224,000 Liabilities and Equity Accounts payable $ 355,000 Bank loan payable 13,000 Taxes payable (due 3/15/2020) 89,000 Total liabilities $ 457,000...
Near the end of 2019, the management of Dimsdale Sports Co., a merchandising company, prepared the following estimated balance sheet for December 31, 2019. DIMSDALE SPORTS COMPANY Estimated Balance Sheet December 31, 2019 Assets Cash $ 36,500 Accounts receivable 520,000 Inventory 142,500 Total current assets $ 699,000 Equipment 564,000 Less: Accumulated depreciation 70,500 Equipment, net 493,500 Total assets $ 1,192,500 Liabilities and Equity Accounts payable $ 355,000 Bank loan payable 13,000 Taxes payable (due 3/15/2020) 91,000 Total liabilities $ 459,000...
Near the end of 2019, the management of Dimsdale Sports Co., a merchandising company, prepared the following estimated balance sheet for December 31, 2019. DIMSDALE SPORTS COMPANY Estimated Balance Sheet December 31, 2019 Assets Cash $ 36,000 Accounts receivable 520,000 Inventory 135,000 Total current assets $ 691,000 Equipment 600,000 Less: Accumulated depreciation 75,000 Equipment, net 525,000 Total assets $ 1,216,000 Liabilities and Equity Accounts payable $ 340,000 Bank loan payable 12,000 Taxes payable (due 3/15/2020) 88,000 Total liabilities $ 440,000...