Haney Company has the following post-closing trial balance on December 31, 2016:
ID: 2465004 • Letter: H
Question
Haney Company has the following post-closing trial balance on December 31, 2016:
Haney Company
Post-Closing Trial Balance
December 31, 2016
Account
Debit
Credit
Cash
$30,000
Accounts Receivable
21,600
Raw Materials Inventory
16,000
Finished Goods Inventory
25,900
Equipment
125,000
Accumulated Depreciation
$60,000
Accounts Payable
14,500
Common Stock
70,000
Retained Earnings
74,000
Totals
$218,500
$218,500
The company's accounting department has gathered the following budgeting information for the first quarter of 2017:
Budgeted total sales, all on account
$305,500
Budgeted direct materials to be purchased and used
30,000
Budgeted direct labor cost
10,000
Budgeted manufacturing overhead costs:
Variable manufacturing overhead
2,100
Depreciation
1,100
Insurance and property taxes
1,050
Budgeted cost of goods sold
71,800
Budgeted selling and administrative expenses:
Salaries expense
13,000
Rent expense
3,500
Insurance expense
1,100
Depreciation expense
300
Supplies expense
12,220
Budgeted cash receipts from customers
264,000
Budgeted income tax expense
42,000
Budgeted purchase and payment for capital expenditures (additional equipment)
40,000
Please prepare Haney Company's budgeted income statement for the first quarter of 2017.
Haney Company
Budgeted Income Statement
For the Quarter Ended March 31, 2017
Sales Revenue
Cost of Goods Sold
Gross Profit
Selling and Administrative Expenses
Income before Income Taxes
Income Tax Expense
Net Income
Please, prepare Haney Company's budgeted statement of cash flows for the first quarter of 2017.
Haney Batting Company
Budgeted Statement of Cash Flows
For the Quarter Ended March 31, 2017
Operating Activities:
Cash receipts from customers ?
Cash payments for operating expenses (?)
Cash payments for income taxes (?)
Net cash provided by (used for) operating activities ?
Investing Activities:
Cash payments for equipment purchases (?)
Net cash used for investing activities (?)
Financing Activities:
Net cash provided by (used for) financing activities 0
Net increase (decrease) in cash ?
Cash balance, January 1, 2017 ?
Cash balance, March 31, 2017 ?
Please prepare Haney Company's budgeted balance sheet as of March 31, 2017.
Haney Company
Budgeted Balance Sheet
March 31, 2017
Assets
Current Assets:
Cash:
Accounts Receivable
Raw Materials Inventory
Finished Goods Inventory
Total Current Assets
Property, Plant, and Equipment:
Equipment
Less: Accumulated Depreciation (?)
Total Assets
Liabilities
Current Liabilities:
Accounts Payable
Stockholders' Equity
Common Stock
Retained Earnings
Total Stockholders' Equity
Total Liabilities and Stockholders' Equity
Explanation / Answer
Budgeted Income Statement for the Quarter Ended 31 Mar,17 Sales 305500 Less:COGS -71800 Gross Profit 233700 Selling and Admin Expense Less:Salaries -13000 Rent -3500 Insurance -1100 Depreciation -300 Supplies -12220 -30120 Income Before Taxes 203580 Less:Taxes -42000 Net Income 161580 Budgeted Cash Flow for The Quarter Ended 31 Mar,17 Cash Receipts from Customers 264000 Less: Cash Payments from operations Direct Materials -30000 Direct Labour -10000 Overheads -2100 Insurance -1050 Salaries -13000 Rent -3500 Insurance -1100 Supplies -12220 Tax Paid -42000 -114970 Cash From Operations 149030 Cash for Purchasing Capital Equipment -40000 Cash After Investing Activities 109030 Cash for Financing Activities 0 Net Increase in Cash 109030 Add: Balance on 1 Jan,17 30000 Cash as on 31 Mar,17 139030 Balance Sheet as of 31 Mar,17 DR Cash 139030 AR 63100 FG&RM Inventory 14350 AP 14500 Equipment 165000 Acc Depreciation 61400 Common Stock 70000 Retained Earnings 235580 381480 381480 Working Notes Accounts Receivable Opening Balance 21600 Add: Sales 305500 Less Cash Received -264000 Closing Balance 63100 Finished Goods Inventory Opening 25900 Add: Goods Produced Material 30000 Labour 10000 Overheads 2100 Depreciation 1100 Insurance 1050 Opening RM 16000 60250 Total Goods Available for Sale 86150 Less: Goods Sold 71800 FG Inventory 14350 Eqipment Opening 125000 Add:Purchase 40000 Closing 165000 Acc Depr Opening 60000 Add: Depreciation 1400 Total 61400 Retained Earnings 74000 Add: Net Income 161580 Total 235580
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