Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / The management of Academic Copy a photocopying center located on University Avenue, has co...

The management of Academic Copy a photocopying center located on University Avenue, has compiled the following data to use in preparing its budgeted balance sheet for next year

The management of Academic Copy, a photocopying center located on University Avenue, has compiled the following data to use in preparing its budgeted balance sheet for next year:

 

 

The beginning balance of retained earnings was $21,000, net income is budgeted to be $8,600, and dividends are budgeted to be $3,500.

Required:

Prepare the company’s budgeted balance sheet.

 

EXERCISE 8–10 Sales and Production Budgets [LO2, LO3]

The marketing department of Graber Corporation has submitted the following sales forecast for the upcoming fiscal year.

 

 

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Budgeted unit sales . . . . . . . .

16,000

15,000

14,000

15,000

 

The selling price of the company’s product is $22.00 per unit. Management expects to collect 75% of sales in the quarter in which the sales are made, 20% in the following quarter, and 5% of sales are expected to be uncollectible. The beginning balance of accounts receivable, all of which is expected to be collected in the first quarter, is $66,000.

The company expects to start the first quarter with 3,200 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 20% of the next quarter’s budgeted sales. The desired ending finished goods inventory for the fourth quarter is 3,400 units.

Required:

1.       Prepare the company’s sales budget and schedule of expected cash collections.

2.       Prepare the company’s production budget for the upcoming fiscal year.

Jun 29 2020 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions