Question

Eyin of safety in un. Expected un-sales - Br sales i saf. In currency Mary of saf in una unsal, prire Ve UMC U Mis Mix WA CM 300 = 200 Bon 625 % - 05 - 1,000 450 = 550 3ooun 37 5 % 206,25 331.25 H800 170 000 330.23 PROBLEM 6 (20 POINTS) Soccer Forever gathered the following information as of May 31, 2018 Price 5,400 May 31 inventory balance $11,000 May payments for inventory 8,300 May payments of accounts payable and accrued liabilities 9,800 May 31 accounts payable balance April 30 equipment balance 37,500 April 30 accumulated depreciation-equipment balance 20,900 Cash purchase of equipment in May 2,700 May operating expenses, excluding depreciation (75% paid in May, 25% accrued on May 31) 4,200 May depreciation expense April 30 stockholders' equity 42,385 April 30 cash balance 27,040 May budgeted sales 17,300 May cash receipts 12,110 Cost of goods sold 65% of sales May 31 accounts receivable balance 30% of May sales 600 Prepare the budgeted balance sheet on May 31, 2018

Answer 1

Ans :Budgeted balance sheet On May 31,2018:

Particulars	Amount($)
Current assets:
cash(27,040-8,300-9,800-2,700-3,150+12,110)	15,200
inventory	11,000
Accounts receivables(30% of 17,300)	5190
Total current assets	31,390
Non current assets:
Equipment(37,500+2,700)	40,200
Less: depreciation(20,900+600)	(21,500)
Total non-current assets	18,700
Total assets	50,090
Current liabilities
Accounts payable	5,400
Operating expenses payable(4200*25%)	1,050
Total current liabilities	6,450
Stockholder equity
Opening balance as on May 1st	42,385
Retained earnings (current year net income)**	1,255
Total stockholder equity	43,640
Total liabilities and stockholder equity	50,090

Particulars	Amount($)
Sales	17,300
Less: cost of goods sold	(11,245)
Gross profit	6,055
Less: operating expenses inc depreciation	4,800
Net income	1,255