The writer is very fast, professional and responded to the review request fast also. Thank you.
Presentation/PPT
27/08/2022
Near the end of 2011, the management of Simid Sports Co, a merchandising company, prepared the following estimated balance sheet for December 31, 2011 Simid Sports Company Estimated Balance Sheet December 31,2011 Assets Cash $18,000 Accounts Receivable 262,500 Inventory 75,000 Total Current Assets 355,500 Equipment $270,000 Less accumulted depreciation 33,750 236,250 Total Assets $591,750 Liabilities and Equity Accounts Payable $180,000 Bank loan payable 7,500 Taxes payable (due 3/15/2012) 45,000 Total liabilities $232,500 Common Stock 236,250 Retained Earnings 123,000 Total stockholders equity 359,250 Total liabilities and equity $591,750 To prepare a master budget for January, February and March 2012, management gathers the following information a. Simid Sprts single product is purchased for $30 per unit and resold for $55 per unit. The expected inventory level of 2,500 units on December 1,2011, is more than management’s desired level for 2012, which is 20% of the next months expected sales (in units). Expected sales are: January, 3,500 units, February, 4,500 units, March, 5,000 units, and April, 5,000 units. b. Cash slaes nd credit sales represent 25% and 75%, respectively, of total sales. Of the credit sales, 60% is collected in the first month after the month of sale and 40% in the second month, after the month of sale. For the December 31, 2011, accounts receivable balance, $62,500 is collected in January and the remaining $200,000 is collected in February. c. Merchandise purchases are paid for as follows: 20% in the first month after the month of purchase and 80% in the second month after the month of purhase. For the December 31, 201, accounts payable balance, $40,000 is paid in January and the remaining $140,000 is paid in February. d. Sales commissions equal to 20% of sales ar paid each month. Sales salaries (excluding commissions) are $30,000 per year. e. general and administrative salaries are $72,000 per year. Maintenance expense equals $1,000 per month and is paid in cash. f. Equipment reported in the December 31, 2011, balance sheet was purchased January 2011. It is being depreciated over eight years under the straight-line method with no salvage value. The following amounts for new equipment purchases are planned in the coming quarter: January, $18,000, February, $48,000, and March, $14,400. This equipment will be depreciated under the straight-line method over eight years with no salvage value. A full month’s deprecation is taken for the month is which the equipment is purchased. g. The company plans to acquire land at the end of March at a cost of $75,000, which will be paid with cash on the last day of the month. h. Simid Sports has a working arrangement with its bank to obtain additional loans as needed. The interest rate is 12% per year, and interest is paid at the end of each month-end based on the beginning balance. Partial or full payments on these loans can be made on the last day of the month. The company has agreed to maintain a minimum ending cash balance of $12,500 each month. i. The income tax rate for the company is 40%. Income taxes on the first quarter’s income will not be paid until Apri l15. Required. Prepare a master budget for each of the first three months of 2012; include the following component budgets (show supporting calcuations as needed, and round amounts to the nearest dollar). 3. Monthly selling expense budget.
SolutionSales Expense BudgetA Sales ( in Units )B Selling Price ( $ per unit )(C=A*B) Sales ( Total in $ )Sales Variable Expenses(D=C*20%) Sales CommissionSales Fixed ExpensesE Sales…
The writer is very fast, professional and responded to the review request fast also. Thank you.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more