In: Accounting
The Traverse Recreation Company's balance sheet as of December 31, 2019 is given below: | ||
Assets | ||
Current Assets: | ||
Cash | $ 46,200 | |
Accounts Receivable (net) | 260,000 | |
Raw Materials Inventory (4,500 yards) | 11,250 | |
Finished Goods Inventory (1,500 units) | 32,250 | |
Total current assets | $ 349,700 | |
Property and Equipment: | ||
Buildings and Equipment | 900,000 | |
Accumulated Depreciation | (292,000) | |
Plant and Equipment (net) | 608,000 | |
Total Assets | $ 957,700 | |
Liabilities and Stockholder's Equity | ||
Current Liabilities: | ||
Accounts Payable | $ 158,000 | |
Stockholder's Equity: | ||
Common Stock | 419,800 | |
Retained Earnings | 379,900 | |
Total Stockholder's Equity | 799,700 | |
Total Liabilities and Stockholder's Equity | $ 957,700 |
Traverse Recreation Company manufactures a single product that is popular with outdoor enthusiasts. The company sells its product to retailers throughout the midwestern section of the United States. It is in the process of creating a master budget for 2020 and reports a balance sheet at December 31, 2019 as follows:
The company’s chief financial officer (CFO), in consultation with various managers across the organization has developed the following set of assumptions to help create the 2020 budget:
Find the following:
Please solve all parts ;)