The Following Information Is Available for Hammel Company

question 20

Essay

The following information is available for Hammel 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 $26,000 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 $84,000 with accumulated depreciation of $30,000, common stock of $25,000 and ending 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:

Person Analysis

The process of assessing an individual's capabilities, skills, and developmental needs to optimize job performance.

Interpersonal Communication Skills

The abilities used to effectively exchange information, ideas, and feelings with others through verbal, non-verbal, written, and digital channels.

Conflicts

Disagreements or disputes arising from differences in attitudes, beliefs, values, or needs among individuals or groups.

Instructional Design Process

A systematic approach to creating educational and training programs in a consistent and reliable fashion to improve learning and efficiency.