Explore BrainMass

Explore BrainMass

    Prepare a master budget for January, February, and March

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    SIMID SPORTS COMPANY

    Estimated Balance Sheet December 31, 2011
    Assets
    Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 18,000
    Accounts receivable . . . . . . . . . . . . . . . . . 262,500
    Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . 75,000
    Total current assets . . . . . . . . . . . . . . . . . . 355,500
    Equipment . . . . . . . . . . . . . . . . . . .$ 270,000
    Less accumulated depreciation . . . . .33,750.. 236,250
    Total assets . . . . . . . . . . . . . . . . . . . . . . . . $ 591,750

    Liabilities and Equity
    Accounts payable . . . . . . . . . . . . . . . . . . . $ 180,000
    Bank loan payable . . . . . . . . . . . . . . . . . . . 7,500
    Taxes payable ( due 3/ 15/ 2012) . . . . . . . . . 45,000
    Total liabilities . . . . . . . . . . . . . . . . . . . . . ........................ $ 232,500
    Common stock . . . . . . . . . . . . . . . . . . . . . 236,250
    Retained earnings . . . . . . . . . . . . . . . . . . . 123,000
    Total stockholders' equity . . . . . . . . . . ............................ . 359,250
    Total liabilities and equity . . . . . . . . . . ....................... . . $ 591,750

    Required:

    Prepare a master budget for each of the first three months of 2012; include the following component budgets (show supporting calculations as needed, and round amounts to the nearest dollar):

    1. Monthly sales budgets (showing both budgeted unit sales and dollar sales).
    2. Monthly merchandise purchases budgets.
    3. Monthly selling expense budgets.
    4. Monthly general and administrative expense budgets.
    5. Monthly capital expenditures budgets.
    6. Monthly cash budgets.
    7. Budgeted income statement for the entire first quarter (not for each month).
    8. Budgeted balance sheet as of March 31, 2012.

    © BrainMass Inc. brainmass.com June 4, 2020, 1:45 am ad1c9bdddf
    https://brainmass.com/business/budgets/prepare-master-budget-january-february-march-418424

    Attachments

    Solution Summary

    The expert prepares a master budget for January, February and March.

    $2.19

    ADVERTISEMENT