Help with Accounting Homework.. CHapter 9 in Textbook Managerial Accounting by T

Question

Help with Accounting Homework.. CHapter 9 in Textbook Managerial Accounting by Tietz

Sheet Medical Supply has applied for a loan. Midwest's Commerce Bank has requested a budgeted balance sheet as of April 30, and a EEB (Click the icon to view the information.) Read the requirements. Requirement 1. Show separate computations for cash, inventory, and owners' equity balances. Begin by calculating the cash balance. Cash Beginning balance $ 40,500 Cash inflows: Cash sales Collections Cash outflows: 60,200 42,300 Payment of March liabilities Cash purchases Payments for April (credit) purchases Purchase of equipment Operating expenses Ending balance

Explanation / Answer

Requirement 1:

Sheet Medical Supply

Budgeted Balance Sheet

April 30

Sheet Medical Supply

Cash Budget

For the month ending April 30

Cost of Goods Sold for April = $ 86,000 x 65% = $ 55,900.

Ending Inventory as on April 30 = Cost of Goods Available for Sale - Cost of Goods Sold = Beginning Inventory + Purchases - COGS = $ ( 29,500 + 10,900 + 36,500 - 55,900) = $ 21,000.

Budgeted Income Statement:

For the month ended April 30

Assets $ $ Current assets Cash 51,030 Accounts Receivable 12,900 Inventory 21,000 84,930 Total Current Assets Equipment Cost 94,600 Accumulated Depreciation (42,000) 52,600 Total Assets 137,530 Liabilities and Equity Accounts Payable 18,250 Accrued Expenses 10,880 Total Current Liabilities 29,130 Owners' Equity 108,400 Total Liabilities and Equity 137,530

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