ACIS 2116 Chapter 10 Additional Budget Example

ACIS 2116 Chapter 10 Additional Budget Example - ACIS 2116...

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ACIS 2116 - Budget Example XYZ Company, a merchandising company, prepares its budget on a quarterly basis. The following information can be used to help XYZ Company prepare its master budget for the quartered ended 3/31/2009. As of 12/31/2008, the company's balance sheet sheet showed the following balances. XYZ Company Balance Sheet at 12/31/2008 Cash $19,000 Accounts receivable, customers 48,000 Inventory 12,600 Building and equipment $236,000 Less: Accumulated depreciation 25,000 211,000 Total assets $290,600 Accounts payable $18,600 Total liabilities $18,600 Capital stock $197,000 Retained earnings 75,000 Total stockholders' equity 272,000 Total liabilities and stockholders' equity $290,600 Additional Information for 2009: 1. Budgeted sales for January-March are: January 2009 (budgeted) $70,000 February 2009 (budgeted) $80,000 March 2009 (budgeted) $85,000 2. XYZ Co. expects to collect 70% of sales in the quarter of the sale and 30% in the quarter following the sale. All of the accounts receivable as
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This note was uploaded on 09/25/2009 for the course ACIS 2116 taught by Professor Cmeasterwood during the Spring '08 term at Virginia Tech.

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ACIS 2116 Chapter 10 Additional Budget Example - ACIS 2116...

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