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    candyapple6's Avatar
    candyapple6 Posts: 1, Reputation: 1
    New Member
     
    #1

    Nov 16, 2014, 03:59 PM
    Profit planning managerial accounting! Help please!
    The balance sheet of Phototec, Inc. a distributor of photographic supplies, as of May 31 is given below:
    Phototec, Inc.
    Balance Sheet
    May 31
    Assets
    Cash $ 6,000
    Accounts receivable 90,000
    Inventory 38,000
    Buildings and equipment, net of depreciation 680,000


    Total assets $ 814,000




    Liabilities and Stockholders' Equity
    Accounts payable $ 81,000
    Note payable 33,000
    Capital stock 600,000
    Retained earnings 100,000


    Total liabilities and stockholders' equity $ 814,000






    The company is in the process of preparing a budget for June and has assembled the following data:

    a. Sales are budgeted at $440,000 for June. Of these sales, $65,000 will be for cash; the remainder will be credit sales. One-half of a month’s credit sales are collected in the month the sales are made, and the remainder is collected the following month. All of the May 31 accounts receivable will be collected in June.
    b. Purchases of inventory are expected to total $350,000 during June. These purchases will all be on account. Forty percent of all inventory purchases are paid for in the month of purchase; the remainder are paid in the following month. All of the May 31 accounts payable to suppliers will be paid during June.
    c. The June 30 inventory balance is budgeted at $40,000 .
    d. Selling and administrative expenses for June are budgeted at $77,000 , exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $3,800 for the month.
    e. The note payable on the May 31 balance sheet will be paid during June. The company’s interest expense for June (on all borrowing) will be $700 , which will be paid in cash.
    f. New warehouse equipment costing $13,000 will be purchased for cash during June.
    g. During June, the company will borrow $36,000 from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year.

    I need a cash budget for June and a budgeted balance sheet for June 30 the rest I did!! Cant figur eout starting cash beginning balance!
    paraclete's Avatar
    paraclete Posts: 2,705, Reputation: 171
    Ultra Member
     
    #2

    Nov 16, 2014, 05:37 PM
    Accounting requires basic comprehension skills

    Phototec, Inc.
    Balance Sheet
    May 31
    Assets
    Cash $ 6,000

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