Accounts Receivable 1008,600………………….
Budgeted income statement and balance sheet
You may use the attached spreadsheet to complete this activity. You will find the spreadsheet by clicking on the paper clip found in the upper left hand corner of the screen.
As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 2009, the following tentative trial balance as of December 31, 2008, is prepared by the Accounting Department of Coconut Grove Soap Co.:
Factory output and sales for 2009 are expected to total 215,000 units of product, which are to be sold at $4.60 per unit. The quantities and costs of the inventories at December 31, 2009, are expected to remain unchanged from the balances at the beginning of the year.
Budget estimates of manufacturing costs and operating expenses for the year are summarized as follows:
Balances of accounts receivable, prepaid expenses, and accounts payable at the end of the year are not expected to differ significantly from the beginning balances. Federal income tax of $80,000 on 2009 taxable income will be paid during 2009. Regular quarterly cash dividends of $0.80 a share are expected to be declared and paid in March, June, September, and December. It is anticipated that fixed assets will be purchased for $60,000 cash in May.
Negative and Subtractive numbers are to be entered as positive numbers.
1. After preparing a budgeted income statement on the attached spreadsheet, give the following amounts:
Cost of goods sold $
Gross profit $
Total selling expenses $
Total administrative expenses $
Total operating expenses $
Income before income tax $
Income tax expense $
Net income $
2. After preparing a budgeted balance sheet on the attached spreadsheet, give the following amounts:
Plant and equipment $
Less Accumulated depreciation $
Total assets $
Retained earnings $
Total liabilities and stockholder’s equity $
chac 22e PR22-5A