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Zetrov CompanyThe cash budget for March shows an ending bank loan

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Zetrov Company:
The cash budget for March shows an ending bank loan of
$10,000 and an ending cash balance of $50,000.
The sales budget for March indicates sales of $140,000.
Accounts receivable are expected to be 70% of the
current-month sales.
The merchandise purchases budget indicates that $89,000
in merchandise will be purchased on account in March.
Purchases on account are paid 100% in the month
following the purchase. Ending inventory for March is
predicted to be 600 units at a cost of $35 each.
The budgeted income statement for March shows net
income of $48,000. Depreciation expense of $1,000 and
$26,000 in income tax expense were used in computing net
income for March. Accrued taxes will be paid in April.
The balance sheet for February shows equipment of
$84,000 with accumulated depreciation of $46,000,
common stock of $25,000, and ending retained earnings of
$8,000. There are no changes budgeted in the equipment
or common stock accounts.
Prepare a budgeted balance sheet for March.
Solution
Liabilities Assets Bank loan 10,000
Cash balance 50,000 common stock
25,000 accounts receivable ( 140,000*70%)
98,000 retained earnings 8,000
Equipment 84,000 accounts payable

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Zetrov Company: The cash budget for March shows an ending bank loan of $10,000 and an ending cash balance of $50,000. The sales budget for March indicates sales of $140,000. Accounts receivable are expected to be 70% of the current-month sales. The merchandise purchases budget indicates that $89,000 in merchandise will be purchased on account in March. Purchases on account are paid 100% in the month following the purchase. Ending inventory for March is predicted to be 600 units at a cost of $35 each. The budgeted income statement for March shows net income of $48,000. Depreciation expense of $ ...
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