Deacon Company is a merchandising company that is preparing a budget for the three-month period ended June 30. The following information is available:
Deacon Company
Balance Sheet
March 31
Assets
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 55,000
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,000
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000
Buildings and equipment, net of depreciation . . . . . . . . . . . 100,000
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $231,000
Liabilities and Stockholders’ Equity
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 51,300
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179,700
Total liabilities and stockholders’ equity . . . . . . . . . . . . . . . . . $231,000
Budgeted Income Statements
April May June
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $100,000 $110,000 $130,000
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . 60,000 66,000 78,000
Gross margin . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000 44,000 52,000
Selling and administrative expenses . . . . . . 15,000 16,500 19,500
Net operating income . . . . . . . . . . . . . . . . . . . $ 25,000 $ 27,500 $ 32,500
Budgeting Assumptions:
1. 60% of sales are cash sales and 40% of sales are credit sales. Twenty percent of all credit sales
are collected in the month of sale and the remaining 80% are collected in the month subsequent to the sale.
2. Budgeted sales for July are $140,000.
3. 10% of merchandise inventory purchases are paid in cash at the time of the purchase. The remaining 90% of purchases are credit purchases. All purchases on credit are paid in the month subsequent to the purchase.
4. Each month’s ending merchandise inventory should equal $10,000 plus 50% of the next month’s cost of goods sold.
5. Depreciation expense is $1,000 per month. All other selling and administrative expenses are paid in full in the month the expense is incurred.
Required:
1. Calculate the expected cash collections for April, May, and June.
2. Calculate the budgeted merchandise purchases for April, May, and June.
3. Calculate the expected cash disbursements for merchandise purchases for April, May, and June.
4. Prepare a budgeted balance sheet at June 30. (Hint: You need to calculate the cash paid for selling and administrative expenses during April, May, and June to determine the cash balance in your June 30 balance sheet.)
Answers: 1
Business, 22.06.2019 10:40, emojigirl5754
Two assets have the following expected returns and standard deviations when the risk-free rate is 5%: asset a e(ra) = 18.5% σa = 20% asset b e(rb) = 15% σb = 27% an investor with a risk aversion of a = 3 would find that on a risk-return basis. a. only asset a is acceptable b. only asset b is acceptable c. neither asset a nor asset b is acceptable d. both asset a and asset b are acceptable
Answers: 2
Business, 22.06.2019 11:10, addsd
Sam and diane are completing their federal income taxes for the year and have identified the amounts listed here. how much can they rightfully deduct? • agi: $80,000 • medical and dental expenses: $9,000 • state income taxes: $3,500 • mortgage interest: $9,500 • charitable contributions: $1,000.
Answers: 1
Business, 22.06.2019 20:30, andrewjsoto
Read the overview below and complete the activities that follow. apartment complexes often look for ways to recruit new tenants and retain current tenants. although apartment complexes offer the tangible benefit of shelter to their tenants, many apartment complexes also offer additional services to tenants to encourage tenants to stay or to support the rent prices. the following scenario identifies the several service gaps of a company that runs an apartment complex as well as solutions for reducing these service gaps. concept review: customers have certain expectations about how a service should be delivered. a service gap occurs when the delivery of a service fails to meet customer expectations. there are four types of service gaps: knowledge gap, standards gap, delivery gap, and the communications gap. it is important for marketers to identify these gaps and develop strategies for minimizing them. match the example or solution to the appropriate service gap category.1. wait for repairs 5. train employees well2. understand expectations 6. incentives for tenants3. do not overpromise 7. family movie night4. empower employees 8. delayed lawn careservice gap example solutionknowledge gap standards gap delivery gap communication gap
Answers: 3
Deacon Company is a merchandising company that is preparing a budget for the three-month period ende...
Physics, 27.09.2021 01:20
English, 27.09.2021 01:20
English, 27.09.2021 01:20
German, 27.09.2021 01:20
Mathematics, 27.09.2021 01:20