Chapter 23 examples for class

Chapter 23 examples for class - Assets Cash AR Inventory...

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Wild Wood Company Balance Sheet 31-Mar-08 Assets Cash $50,000 AP $156,000 AR $175,000 ST Notes Payable $12,000 Inventory $126,000 Total Current Liabilities $168,000 Total Current Assets $351,000 Long Term Notes Payable $200,000 Equipment, Gross $480,000 Total Liabilities $368,000 Accumulated Depreciation $(90,000) Common Stock $235,000 Equipment Net $390,000 Retained Earnings $138,000 Total Stockholder's Equity $373,000 Total Assets $741,000 $741,000 1. Prepare the sales budget, including budeted sales for July April May June July Prior Period's Unit Sales 10,000 10,500 11,025 11,576 Plus 5% Growth 500 525 551 579 Projected Unit Sales 10,500 11,025 11,576 12,155 April May June Quarter Projected Unit Sales 10,500 11,025 11,576 Selling Price per Unit $25.00 $25.00 $25.00 $262,500 $275,625 $289,406 $827,531 2. Prepare the purchases budget, budgeted cost of goods sold for each month and quarter, and the cost of the June 30 budgeted inventory. Purchases Budget April May June Quarter Next Period's Unit Sales 11,025 11,576 12,155 Ending Inventory Percent 80% 80% 80% Desired Ending Inventory 8,820 9,261 9,724 Current Period's Ending Sales 10,500 11,025 11,576 Units to be Avaialble 19,320 20,286 21,300 Less Beginning Inventory (8,400) (8,820) (9,261) Units to be Purchased 10,920 11,466 12,039 Budgeted Cost per Unit $15 $15 $15 Projected Purchases $163,800 $171,990 $180,590 $516,380 Budgeted Cost of Goods Sold April May June Quarter This Period's Unit Sales 10,500 11,025 11,576 Budgeted Cost per Unit $15 $15 $15 Projected Cost of Goods Sold $157,500 $165,375 $173,644 $496,519 Budgeted Inventory for June 30 Units 9,724 Cost per Unit $15 Total $145,861 3. Selling Expense Budget April May June Quarter Budgeted Sales $262,500 $275,625 $289,406 $827,531 Commission Percent 12.5% 12.5% 12.5% 12.5% Sales Commissions $32,813 $34,453 $36,176 $103,441
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Chapter 23 examples for class - Assets Cash AR Inventory...

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