Beginig cash balance quater-17365 is incorrect The following data relate to the

Question

Beginig cash balance quater-17365 is incorrect

The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: Cash $ 8,300 $ 23,200 $ 44,400 $ 126,000 26,550 $ 150,0ee $ 25,350 Accounts receivable Inventory Building and equipment, net Accounts payable Common stock Retained earnings a. The gross margin is 25% of sales b. Actual and budgeted sales data March (actual) April May June July $ 58,0ee $ 74,000 $ 79,000 $104,000 $ 55,000 C. Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following sale. The accounts receivable at March 31 are a result of March credit sales

Explanation / Answer

Shillow Company Cash Budget April May June Quarter Beginning cash balance $8,300 $4,380 $4,685 $8,300 Add : Collections from customers $67,600 $77,000 $94,000 238600 Total Cash Available $75,900 $81,380 $98,685 $246,900 Less : Cash Disbursements For Inventory $55,800 $66,375 $61,425 183600 For Expenses $16,420 $17,320 $21,820 55560 For Equipment $2,300 2300 Total Cash Disbursements 74520 83695 83245 241460 Excess (deficiency) of cash available over disbursements $1,380 ($2,315) $15,440 $5,440 Financing Borrowings $3,000 $7,000 $10,000 Repayments ($10,000) ($10,000) Interest Total Financing $3,000 $7,000 ($10,000) $0 Interest ($230) -230 Ending Cash Balance $4,380 $4,685 $5,210 $5,210 Beginning Cash Balance quarter 17365 is incorrect April May June Quarter Beginning Cash Balance $8,300 $4,380 $4,685 $8,300 Shilow Company Income Statement For the Quarter Ended June 30 Sales 257000 (74000+79000+104000) Cost of Goods Sold Beginning Inventory $44,400 Purchases $181,350 Goods Available for Sale $225,750 Ending Inventory $33,000 $192,750 Gross Margin $64,250 Selling and administrative expenses : Commissions (257000*12%) 30840 Rent $9,300 Other Expenses $15,420 Depreciation (945*3) 2835 58395 Profit before interest $5,855 Less : Interest 230 (3000*1%)+(10000*1%)+(10000*1%) Net Profit $5,625 Gross Margin = 25%*257000 64250 Cost of Goods Sold = Sales - Gross Margin (257000-64250) 192750 Cost of Goods Sold = Beginning Inventory + Purchases - Ending Inventory 192750 = 44400+Purchases - 33000 Cost of Goods Sold = $ 181350 Balance Sheet June'30 ASSETS Current Assets Cash $5,210 Accounts Receivable $41,600 Inventory $33,000 Total current assets $79,810 Building and Equipment, net 125465 (126000+2300-2835) Total Assets $205,275 LIABILITIES AND STOCKHOLDERS EQUITY Accounts Payable 24300 Stockholders Equity Common Stock $150,000 Retained Earnings 30975 Total Liabilities and stockholders equity $205,275 Workings Sales March (Actual) April May June July $58,000 $74,000 $79,000 $104,000 $55,000 Cash - 60% $44,400 $47,400 $62,400 Credit - 40% $23,200 $29,600 $31,600 $41,600 Total Cash Collections $67,600 $77,000 $94,000 Inventory Payment April May June (Payment of month Less Previous month bal) 29250 37125 24300 26550 29250 37125 55800 66375 61425

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.