The Following Information Is Available for Jergenson Company

question 127

Essay

The following information is available for Jergenson Company:
a. The Cash Budget for March shows a bank loan of $10,000 and an ending cash balance of $48,000.
b. The Sales Budget for March indicates sales of $120,000. Accounts receivable is expected to be 70% of the current-month sales.
c. The Merchandise Purchases Budget indicates that $90,000 in merchandise will be purchased in March on account and ending inventory for March is predicted to be 600 units @ $35. Purchases on account are paid 100% in the month following the purchase.
d. The Budgeted Income Statement shows a net income of $48,000 and $21,000 in income tax expense for the quarter ended March 31. Accrued taxes will be paid in April.
e. The Balance Sheet for February shows equipment of $77,000 with accumulated depreciation of $28,000, common stock of $25,000 and retained earnings of $8,000. There are no changes budgeted in the equipment or common stock accounts.
Prepare a budgeted balance sheet for March.

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Definitions:

Acceptable Name

A term used to indicate a name for a chemical compound that is approved by a recognized authority, such as the International Union of Pure and Applied Chemistry (IUPAC).

Starting Materials

The reactants used at the beginning of a synthetic chemical reaction.

Structures

The arrangement of atoms in a molecule.

Organic Product

A compound or material derived from living organisms or the result of organic reactions.