In: Accounting
The information given below is Bobcats Company’s beginning balance sheet, estimates and policies, and the partially completed Master Budget for January and February. Use the information to answer the 22 Multiple Choice Questions, each asking for a missing number from the Master Budget. Round all your computations to the nearest dollar.
Assets | Liabilities & SE | ||
Current Assets | Current Liabilities | ||
Cash | $16,000 | Accounts Payable | $23,500 |
Accounts Receivable | 48,000 | Commissions Payable | 3,400 |
Prepaid Insurance | 0 | Income Taxes Payable | 9,275 |
Inventory | 9,600 | Dividends Payable | 0 |
Total Current Assets | 73,600 | Total Current Liabilities | 36,175 |
Long-term Debt | 80,000 | ||
Property, Plant & Equipment | |||
Equipment | 95,000 | Stockholders Equity | |
Land | 8,800 | Common Stock | 26,225 |
Accumulated Depreciation | (25,000) | Return Earnings | 10,000 |
Net PPE | 78,800 | Total SE | 36,225 |
Total Assets | $152,400 | Total Liabilities & SE | $152,400 |
Babcats Company's partically completed master budget is as follows:
Sales Budget
January | February | March | |
Credit Sales | $80,900 | $100,900 | $105,900 |
Cash Receipts from Customers | |||
From Current Month Credit Sales | |||
From Prior Month Credit Sales | |||
Total Cash Receipts from Customers | (1) |
Inventory Purchases Budget
January | February | March | |
COGS | $40,360 | $42,360 | |
Desired Ending Inventory | |||
Total INventory Needed | |||
Beginning Inventory | |||
Inventory Purchases | (2) | ||
Cash Payments for Inventory Purchases | |||
For Current Month Purchases | |||
For Prior Month Purchases | |||
Total Cash Payments for Inventory Purchases | $40,788 | (3) |
Selling & Administrative Expenses Budget
January | February | |
Variable Selling & Administrative Expenses | ||
Commissions | (4) | |
Miscellaneous | ||
Total Variable S&A Expenses | 4,045 | 5,045 |
Fixed Selling & Administrative Expenses | ||
Miscellaneous | ||
Rent | 2,000 | 2,000 |
Supplies | ||
Depreciation | 1,800 | 1,800 |
Insurance | (5) | |
Total Fixed S&A Expenses | $6,100 | $6,100 |
Cash Payments for S&A Expenses | ||
Commissions | ||
Utilities | ||
Advertising | ||
Salaries | ||
Depreciation | (6) | |
Insurance | (7) | |
Total Cash Payments for S&A Expenses | $36,918 | $7,545 |
Cash Budget
January | February | |
Beginning Cash Balance | ||
Cash Receipts from Customers | ||
Total Cash Available | 80,180 | |
Cash Payments | ||
For Inventory Purchases | 40,788 | |
For S&A Expenses | ||
For Interest | (8) | |
For Income Taxes | ||
For Land Purchase | ||
For Dividends | ||
Total Cash Payments | 87,781 | |
Surplus (Deficit) | (9) | 39,574 |
Borrowing (Repayment) | (10) | |
Ending Cash Balance | $ 15,000 |
Income Statement
January | February | |
Sales | $80,900 | $100,900 |
Less: Variable Expenses | ||
COGS | ||
Variable S&A Expenses | ||
Contrinbution Margin | (11) | |
Less: Fixed Expenses | ||
Fixed S&A Expenses | ||
Interest Expense | ||
Pre-tax Net Income | ||
Income Taxes Expense | 11,279 | 14,510 |
After-tax Net Income | $26,317 | $33,856 |
Balance Sheet
Assets | Liabilities & SE | ||||
Current Assets | Current Liabilities | ||||
Cash | (12) | Accounts Payable | (18) | ||
Accounts Receivable | (13) | Commissions Payable | (19) | ||
Prepaid Insurance | (14) | Income Taxes Payable | |||
Inventory | (15) | Dividends Payable | (20) | ||
Total Current Assets | Total Current Liabilities | ||||
Long-term Debt | (21) | ||||
Property, Plant & Equipment | |||||
Equipment | 95,000 | 95,000 | Stockholders Equity | ||
Land | (16) | Common Stock | 26,225 | 26,225 | |
Accumulated Depreciation | (17) | Return Earnings | (22) | ||
Net PPE | Total SE | ||||
Total Assets | $190,773 | $207,674 | Total Liabilities & SE | $190,773 | $207,674 |
(13) What is the balance of Accounts Receivable on February 28?
multiple choice 13
$64,720
$84,720
$48,000
$80,720
(14) What is the balance of Prepaid Insurance on January 31?
multiple choice 14
$27,600
$26,400
$28,800
$0
(15) What is the balance of Inventory on February 28?
multiple choice 15
$6,354
$6,054
$40,660
$9,600
(16) What is the balance of Land on February 28?
multiple choice 16
$8,800
$0
$12,800
$4,000