Macheski Company, an Importer and Retailer of Polish Pottery and Kitchenware

question 49

Multiple Choice

Macheski Company, an importer and retailer of Polish pottery and kitchenware, prepares a monthly master budget. Data for the July master budget are given below: The June 30th balance sheet follows: $$\begin{array}{l}\begin{array} { l l r } \text { Cash } & \$ 25,000 \text { Accounts payable } & \$ 45,000 \\\text { Accounts receivable } & 110,000 \text { Capital stock } & 300,000 \\\text { Inventory } & 54,000 \text { Retained earnings } & 94,000 \\\text { Buil ding and equipment (net) } & 250,000 &\end{array}\\\text { Actual sales for June and budgeted sales for July, August, and September are given below: }\\\begin{array} { l r } \text { June } & \$ 137,500 \\\text { July } & 360,000 \\\text { August } & 400,000 \\\text { September } & 320,000\end{array}\end{array}$$ Sales are 20 percent for cash and 80 percent on credit. All credit sales are collected in the month following the sale. There are no bad debts.
The gross margin percentage is 40 percent of sales. The desired ending inventory is equal to 25 percent of the following month's sales. One fourth of the purchases are paid for in the month of purchase and the others are purchased on account and paid in full the following month.
The monthly cash operating expenses are $43,000, and the monthly depreciation expenses are $7,000.
What is the balance of the building and equipment (net) account at the end of July?

• A)$243,000
• B)$250,000
• C)$257,000
• D)$300,000

Comprehend the various processes and stages involved in ADR, including mediation, arbitration, mini-trials, and negotiation.

Learn the legislative and statutory framework governing ADR, including international applications and the role of the Federal Arbitration Act.

Understand the principle and application of non-binding and binding arbitration in dispute resolution.

Explore the concept and practice of collaborative law and its significance in resolving disputes without litigation.

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Definitions:

Accounting Information

Data related to the financial performance and position of a company, including balance sheets, income statements, and cash flow statements.

Financial Analysts

Professionals who evaluate financial data, economic trends, and investment opportunities to provide guidance and advice to businesses and individuals.

Financial Accounting Standards Board

An autonomous institution tasked with the development and enhancement of financial accounting and reporting guidelines within the United States.

Public Company Accounting Oversight Board

A nonprofit organization established by Congress to oversee the audits of public companies in order to protect investors and the public interest.