Reference no: EM131760407

Question: Merchandising: Budgeted balance sheet. The following information is available for Zetrov Company:

a. The cash budget for March shows an ending bank loan of $15.000 and an ending cash balance of $61,000

b. The sales budget for March indicates sales of $130.000. Accounts receivable are expected to be 65% of the current-month sales.

c. The merchandise purchases budget indicates that $90,000 in merchandise will be purchased on account in March. Purchases on account are paid 100% in the month following the purchase. Ending inventory for March is predicted to be 700 units at a cost of $35 each.

d. The budgeted income statement for March shows net income of $49,000. Depreciation expense of $2,000 and $27,000 in income tax expense were used in computing net income for March. Accrued taxes in April.

e. The balance sheet for February shows equipment of $83 000 with accumulated depreciation of $31,000 common stock of $30,000, and ending retained earnings of $9,000. There are no changes budgeted in the equipment or common stock accounts. Prepare a budgeted balance sheet for March.