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ABC ENTERPRISES
The management of ABC Enterprises has compiled the following data for next year to use in preparing its budgeted balance sheet:
Cash ?
Accounts receivable $27,000
Inventory 32,000
Equipment 24,500
Accumulated amortization 6,500
Accounts payable 13,000
Common shares 40,000
Retained earnings ?
The beginning balance of retained earnings was $11,000, net income is budgeted to be $26,000, and dividends are budgeted to be $5,000.
Problem 1: Prepare the company's budgeted balance sheet.
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