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Quiz+4+Spring - Group Quiz 4 Names Note all students listed...

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Group Quiz 4 Names ________________________________ ___________________________________________ Note: all students listed under “Names” must be present when turning in the quiz. Near the end of 2009, the management of Waren Sports Co., a merchandising company, prepared the following estimated balance sheet for December 31, 2009. Waren Sports Co. Estimated Balance Sheet December 31, 2009 Assets: Liabilities and Equity: Cash $ 35,000 Accounts payable $345,000 Accounts receivable 520,000 Bank loan payable 14,000 Inventory 142,500 Taxes payable (due 3/15/10) 91,000 Total current assets $697,500 Total liabilities $450,000 Equipment $540,000 Common stock 473,000 Less A/D 67,500 472,500 Retained earnings 247,000 Total assets $1,170,000 Total stockholders’ equity 720,000 Total liabilities and equity $1,170,000 To prepare a master budget for January, February, and March of 2010, management gathers the following information. a. Waren Sports’ single product is purchased for $30 per unit and resold for $53 per unit. The expected inventory level of 4,750 units on December 31, 2009, is more than management’s desired level for 2010, which is 20 percent of next month’s expected sales (in units).
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