Solution-Make a budgeted statement of financial position

Make a budgeted statement of financial position

Assignment Help Managerial Accounting

Reference no: EM132529224

The following basic information relates to a new business and its expected performance over the next six months.

1. Puts in capital of $40,000

2. Buys, for cash, goods for resale amounting to $60,000

3. Sells, on credit, three-quarters of these goods at a selling price of cost plus 40% By the end of the period, only 75% of customers had paid for the goods purchased.

4. Pays wages of $12,000 in cash

5. Pays other expenses of $4,000 in cash

6. Buys a new vehicle for $30,000 -- $15,000 paid in cash and the rest on loan carrying interest at 10% per annum

Required

Question (a) Make a budgeted income statement for the first six months.

Question (b) Make a budgeted statement of financial position at the end of the six months.

Question (c) Make a budgeted summary statement of cash flows for the first six months.

Question (d) Identify the critical decisions (possibly implicit) that have been made that have led to the resulting cash balance.

Question (e) How might this situation have been avoided?

Reference no: EM132529224

Questions Cloud

What was the amount of overhead allocated to product a : Romanowski manufactured 100 pieces of product A using 2,500 direct labor hours. What was the amount of overhead allocated to Product A

Balanced scorecard and ethical leadership : Pick one of the following terms for your research: Balanced scorecard, ethical leadership, emotional intelligence, sustainability, or authentic leadership.

Write a function to compute simplified des decrypt : Let temp_block denote a Sage variable that contains the output of the first application of function fK (f_K in the Sage example code) while encrypting.

Intellectual property and torts and crimes : Discuss the potential violations related to intellectual property rights. What was the consideration for signing the non-compete agreement?

Make a budgeted statement of financial position : Identify the critical decisions (possibly implicit) that have been made that have led to resulting cash balance. Make a budgeted statement of financial position

Create a list of stakeholders for the ir planning committee : Assume that you have been tasked by your employer to develop an incident response plan. Create a list of stakeholders for the IR planning committee.

What would the spending variance : At a budgeted amount of 10,000 lounge chairs the manufacturing overhead is $50,000 variable, what would the spending variance

What are the null and alternative hypotheses : A researcher aims to investigate if hospital A has a higher survival rates than hospital B when it comes to heart transplants? Test at the .02 significance leve

Estimate project cost and time : Evaluate the essential components of a project plan that would meet industry standards and Critically evaluate project plans. Prepare an outline of a project

User Account

All Pages

Make a budgeted statement of financial position

Reference no: EM132529224

Reference no: EM132529224

Questions Cloud

Reviews

Write a Review

Managerial Accounting Questions & Answers

What selling price per unit would the company generate

Warnerwoods company uses a perpetual inventory system it

What is the required rate of yield on the preferred stock

Compute the predetermined variable overhead rate

What is the competitive strategy of vincent business

Explain the nature of balancing item foreign exchange gain

Compute the machine hours needed to produce one unit

How much ashleys assets at december are a total

Publishes a corporate social responsibility report

Why does the fasb recommend the direct method

During the month, it completed the following transactions

Prepare a budgeted schedule of cost of good manufactured

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT