Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows:
The company's beginning cash balance for the upcoming fiscal year will be $20,000. The company requires a minimum cash balance of $10,000 and may borrow any amount needed from a local bank at a quarterly interest rate of 3%. The company may borrow any amount at the beginning of any quarter and may repay its loans, or any part of its loans, at the end of any quarter. Interest payments are due on any principal at the time it is repaid. For simplicity, assume that interest is not compounded.
Required:
Prepare the company's cash budget for the upcoming fiscal year. (Show deficiencies, repayments, interest, and total financing preceded by a minus sign when appropriate. Enter all other amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)
Since the deficiency of cash available over disbursements is $60,000, the company must borrow $70,000 to maintain the desired ending cash balance of $10,000.
Gig Harbor Boating is the wholesale distributor of a small recreational catamaran sailboat. Management has prepared the following summary data to use in its annual budgeting process:
Budgeted unit sales
460
Selling price per unit
$
1,950
Cost per unit
$
1,575
Variable selling and administrative expenses (per unit)
$
75
Fixed selling and administrative expenses (per year)
$
105,000
Interest expense for the year
$
14,000
Required:
Use the absorption costing income statement method, prepare the company's budgeted income statement. (Input all amounts as positive values. Omit the "$" sign in your response.)
Gig Harbor Boating is the wholesale distributor of a small recreational catamaran sailboat. Management has prepared the following summary data to use in its annual budgeting process:
Budgeted unit sales
460
Selling price per unit
$
1,950
Cost per unit
$
1,575
Variable selling and administrative expenses (per unit)
$
75
Fixed selling and administrative expenses (per year)
$
105,000
Interest expense for the year
$
14,000
Required:
Use the absorption costing income statement method, prepare the company's budgeted income statement. (Input all amounts as positive values. Omit the "$" sign in your response.)
Cost of goods sold (460 units × $1,575 per unit) = $724,500
Selling and administrative expenses (460 units × $75 per unit) + $105,000 = $139,500.
Question 9:Score 0.38/4
Your response
Correct response
Exercise 9-9 Budgeted Balance Sheet [LO10]
The management of Mecca Copy, a photocopying center located on University Avenue, has compiled the following data to use in preparing its budgeted balance sheet for next year:
