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Unformatted text preview: EXAMPLE: MASTER BUDGET PREPARATION Deans Devices Corporation has the following balance sheet at December 31, 2007: Assets Liabilities Cash..$10,200 Accounts payable $ 5,400 Accounts receivable . 17,200 Inventories: Direct materials (4,400 units).. 8,800 Finished goods (1,400 units) 20,160 Stockholders Equity Equipment .50,000 Common stock ..10,500 Less: Accumulated depreciation ...(30,000 ) Retained earnings .. 60,460 Total liabilities and Total assets $76,360 Stockholders equity $ 76,360 The company is preparing its budget for the first quarter of 2008 and has collected the data below: a. The sales forecast is 2,000; 1,700; 1,600; and 1,500 units for January, February, March, and April, respectively. The unit sales price is $16. All sales are on credit and collections are 40% in the month of sale and 60% the following month. Accounts receivable is for credit sales only.in the month of sale and 60% the following month....
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- Fall '11
- Balance Sheet