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*Only Solve Part (C) Using Parts A & B *Only Solve Part (C) Using Parts A & B (5

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Question

*Only Solve Part (C) Using Parts A & B

*Only Solve Part (C) Using Parts A & B

(5) 1c. Given the following information and that contained in Parts (a) and (b), construct a forecast balance sheet as of June 30, 2017, for the XYZ Store. XYZ Store balance sheet at December 31, 2016 ASSETS LIABILITIES AND EQUITY $160,000 500,000 Cash Accounts receivable Inventory Fixed assets, net $80,000 Accounts payable Bonds Common stock and retained earnings 427,500 240,000 260,000 S1007500 347.500 S1,007500

Explanation / Answer

Assets Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Cash             138,970       177,180        86,120        89,420        81,820         87,220 Account receivable             357,030       345,720       374,430       417,495       444,900       435,330 Inventory             165,600       172,800       201,600       208,800       172,800       259,200 Fixed asset             257,833       255,667       253,500       251,333       249,167       247,000 Tax prepaid        70,000 Capital investment         80,000             919,433       951,367       915,650    1,037,048       948,687    1,108,750 Liabilities Accounts payable               69,600       172,800       201,600       208,800       172,800       259,200 Bonds             500,000       500,000       500,000       500,000       500,000       500,000 Common stock and retained earnings             349,833       278,567       134,050 -      51,752 -     334,113 -     560,450 Bank loan                      -                 -          80,000       380,000       610,000       910,000             919,433       951,367       915,650    1,037,048       948,687    1,108,750 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Sales             200,000       230,000       240,000       280,000       290,000       240,000 Credit sale             174,000       200,100       208,800       243,600       252,300       208,800 Cash budget Opening 80000       138,970       177,180        86,120        89,420         81,820 Cash sales               26,000        29,900        31,200        36,400        37,700         31,200 Cash from credit sales Oct sale 31320 Nov sale 91350 39150 Dec sale 121800 85260 36540 Jan sale        87,000        43,500        26,100 Feb Sale       100,050        70,035        30,015 Mar Sale       104,400        73,080         31,320 Apr sale       121,800         60,900 May sale       126,150 Credit purchase 160000        69,600       172,800       201,600       208,800       172,800 Wages and salaries 45000 40000 50000 55000 60000 57000 Rent 6500 6500 6500 6500 6500 6500 Interest 9500 9500 Tax prepayment 70000 Capital investment 80000 Bank loan 80000 300000 230000 300000 Closing cash balance             138,970       177,180        86,120        89,420        81,820         87,220 Inventory Opening             240,000       165,600       172,800       201,600       208,800       172,800 Purchase               69,600       172,800       201,600       208,800       172,800       259,200 Sale             144,000       165,600       172,800       201,600       208,800       172,800 Closing             165,600       172,800       201,600       208,800       172,800       259,200 Account receivable Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Opening 427,500 357,030 345,720 374,430 417,495 444,900 Credit sale 174,000 200,100 208,800 243,600 252,300 208,800 Cash received 244,470 211,410 180,090 200,535 224,895 218,370 Closing 357,030 345,720 374,430 417,495 444,900 435,330 Fixed asset Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Net - Opening 260000 257,833 255,667 253,500 251,333 249,167 Depreciation ((260000/10)/12)      2,167      2,167      2,167      2,167      2,167      2,167 Closing 257,833 255,667 253,500 251,333 249,167 247,000