Question

The purchasing department manager for Franklin Company prepared the following supplies purchases budget. Franklin's policy is to maintain an ending supplies balance equal to 10 percent of the following month's supplies expense. April's budgeted supplies expense is $77,000. Required a. Complete the supplies purchases budget by filling in the missing amounts. b. Determine the amount of supplies expense the company will report on its first quarter pro forma income statement c. Determine the amount of ending supplies the company will report on its pro forma balance sheet at the end of the first quarter Complete this question by entering your answers in the tabs below. Req A Reg B and C Complete the supplies purchases budget by filling in the missing amounts. March $ 65,000 Supplies Purchases Budget January February Budgeted supplies expense $ 55,000 $ 59,000 Plus: Desired ending supplies 5,900 Supplies needed 60,900 Less: Beginning supplies 5,500 Required purchases (on $ 55,400 account) T Req Band >

Answer 1

3 A B C D E Question - 1 Supplies Purchases Budget January February March | Total 4 Budgeted supplies expense $ 55,000 $ 59,000 $ 65,000 $179,000 5 Plus: Desired ending supplies $ 5,900 $ 6,500 $ 7,700 $ 7,700 6 Supplies needed $ 60,900 $ 65,500 $ 72,700 $186,700 7 Less: Beginning supplies $ 5,500 $ 5,900 $ 6,500 $ 5,500 8 Required purchases (on account) $ 55,400 $ 59,600 $ 66,200 $181,200 9 14 10 (6) Supplies Expense $179,000 11 (c) Ending Supplies $ 7,700 12 13 Question - 2 Schedule of Cash Payments for Supplies Purchases 16 April May June Total 17 Payment for Current Accounts Payable $ 99,900 $117,900 $ 128,700 $346,500 18 Payment for previous accounts payable $ 12,000 $ 11,100 $ 13,100 $ 36,200 | 19 Total budgeted payments for supplies $111,900 $ 129,000 $141,800 $382,700 15 20 Accounts Payable $ 14,300 21 22 23 24 Question - 3 25 a. Budgeted cash payments 26 b. Utilities payable 27 c. Depreciation expense $ 42,300 $ 5,600 $ 46,800 28

3 A C D L E Question - 1 Supplies Purchases Budget January February March Total 4 Budgeted supplies expense 55000 59000 65000 =SUM(B4:D4) 5 Plus: Desired ending supplies =C4*10% =D4*10% =77000*10% =D5 6 Supplies needed =B4+B5 =C4+C5 =D4+D5 =E4+E5 7 Less: Beginning supplies =B4*10% =C4*10% =D4*10% =B7 8 Required purchases (on account) =B6-B7 =C6-C7 =D6-D7 =E6-E7 9 10 (6) Supplies Expense =E4 11 (C) Ending Supplies 12 13 14 Question - 2 15 Schedule of Cash Payments for Supplies Purchases April May June Total 17 Payment for Current Accounts Payable =111000*90% =131000*90% =143000*90% =SUM(B17:017) 18 Payment for previous accounts payable 12000 =111000*10% =131000*10% =SUM(B18:D18) 19 Total budgeted payments for supplies =SUM(B17:B18) =SUM(C17:C18) =SUM(D17:D18) I=SUM(E17:E18) 16 20 Accounts Payable =143000*10% 21 22 23 24 Question - 3 25 a. Budgeted cash payments 26 b. Utilities payable 27 c. Depreciation expense =26000+15000+1300 5600 =3900*12 28

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