Deacon Company is a merchandising company that is preparing a budget for the thr

Question

Deacon Company is a merchandising company that is preparing a budget for the three-month period ended June 30th The information is available Deacon Company Balance Sheet Cash Accounts receivable Ihventory Buildings and equipment, net of depreciation Total assets Liabilities and Stockholders Equity Accounts payable Common stock 57, 600 40, 400 52,300 Print 173,000 $323, 300 $115,400 70, 000 137, 900 Total 1iabilities and stockholders' equity $323, 300 $141,000 $151,000 $171,000 cost of goods sold Gross margin 84, 600 56, 400 Selling and administrative expenses 21, 100 90, 600 60, 400 22, 600 102, 600 25, 600 42,800 s 35,300 37,800 Net Next>

Explanation / Answer

1 Schedule of cash receipts: April May June Total Total sales 141000 151000 171000 Cash receipts: Cash sales 84600 90600 102600 (141000*60%) (151000*60%) (171000*60%) Acconts receivable 40400 April sales-Credit (141000*40%)=56400 11280 45120 (56400*20%) (56400*80%) May sales-Credit (151000*40%)=60400 12080 48320 (60400*20%) (60400*80%) June sales-Credit (171000*40%=68400 13680 (68400*20%) Total receipts 136280 147800 164600 448680 2 Budgeted merchandise purchAse: April May June July Cost of goods sold (Sales*60%) 84600 90600 102600 108600 (181000*60%) Add:Ending inventory 55300 61300 64300 (10000+50% of next month cost of goods sold) 139900 151900 166900 Less:Beginning inventory 52300 55300 61300 Purchase 87600 96600 105600 3 Expected cash disbursement for merchandise purchase April May June Total Purchase 87600 96600 105600 Cash disbursement: Paid in the same month -10% 8760 9660 10560 Paid in the next month -90% 78840 86940 (87600*90%) (96600*90%) Accounts payable balance on Mar 31 115400 Total disbursements 124160 88500 97500 310160 4 Budgeted balance sheet Assets Cash (Note:1) 131920 Accounts receivable (68400*80%) 54720 Inventory 64300 Building and equipment (173000-[3*1700]) 167900 Total assets 418840 Liabilities and stockholder's equity Accounts payable (105600*90%) 95040 Common stock 70000 Retained earnings (137900+35300+37800+42800) 253800 Total Liabilities and stockholder's equity 418840 Notes: 1. Cash account: Beginning balance 57600 Add:Cash receipt   448680 506280 Less:payment Purchase 310160 Selling and administrative expenses (Excl.Depreciation) [21100+22600+25600-(3*1700)] 64200 374360 Ending balance 131920

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

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