Compute the amounts that would appear on the march 31

Reference no: EM13582165

The following information relates to DFW Corporation:
· All sales are on account and are budgeted as follows: February, $350,000; March, $360,000; and April, $400,000. DFW collects 70% of its sales in the month of sale and 30% in the following month.

· Cost of goods sold averages 60% of sales. Purchases total 65% of the following month's sales and are paid in the month following acquisition.

· Cash operating expenses total $60,000 per month and are paid when incurred. Monthly depreciation amounts to $18,000.

· Selected amounts taken from the January 31 balance sheet were: accounts receivable, $115,000; plant and equipment (net), $107,000; and retained earnings, $85,000.

Required: (NOTE: Ignore income taxes in answering these questions)
A. Prepare a budgeted income statement for the two months ended March 31, 20x1.

B. Compute the amounts that would appear on the March 31 balance sheet for accounts receivable, plant and equipment (net), and retained earnings.

Reference no: EM13582165

Questions Cloud

Joplin laminating corporation reported income before : joplin laminating corporation reported income before income taxes during the first three quarters and managements

State the apparent relationship between odometer reading : a regression model fit for the relationship between a cars odometer reading thousands km and its trade-in value

Alabama alarm corp plans to finance its operations by : alabama alarm corp. plans to finance its operations by issuing 15000000 of five year 14 bonds with interest payable

21 760000 20x2 1250000 20x3 0 20x4 3020000 20x5 : john dear co. is a heavy equipment and lawn care products manufacturer located in illinois. john dear is publicly owned

Compute the amounts that would appear on the march 31 : the following information relates to dfw corporationmiddot all sales are on account and are budgeted as follows

How can you continue to practice what youve learned this : 1 what are your own experiences working with groups whether in school at work or in a social setting? do you prefer to

On 714 the corporation sold 25000 shares of 5 par value : on 714 the corporation sold 25000 shares of 5 par value common stock for 30 per share. please give the journal entry to

There were no direct materials price or direct labor rate : at the beginning of june cornerstone printing company budgeted 10000 books to be printed in june at standard direct

A new macromolecule was identified that seems to be common : 1. a new macromolecule was identified that seems to be common in patients having a certain type of tumors and you are

User Account

All Pages