October sales areestimated to be $300,000, of which 40 percent will be cash and 60percent will be credit. The company expects sales to increase atthe rate of 20 percent per month. Prepare a sales budget.
The company expects tocollect 100 percent of the accounts receivable generated by creditsales in the month following the sale. Prepare a schedule of cashreceipts.
The cost of goods soldis 70 percent of sales. The company desires to maintain a minimumending inventory equal to 20 percent of the next monthâs cost ofgoods sold. However, ending inventory of December is expected to be$12,100. Assume that all purchases are made on account. Prepare aninventory purchases budget.
The company pays 80percent of accounts payable in the month of purchase and theremaining 20 percent in the following month. Prepare a cashpayments budget for inventory purchases.
Budgeted selling andadministrative expenses per month follow:
Salary expense(fixed) $ 18,100 Salescommissions 4 % of Sales Suppliesexpense 2 % of Sales Utilities(fixed) $ 1,500 Depreciation onstore fixtures (fixed)* $ 4,100 Rent(fixed) $ 4,900 Miscellaneous(fixed) $ 1,300
*The capital expenditures budget indicates that Baird will spend$119,400 on October 1 for store fixtures, which are expected tohave a $21,000 salvage value and a two-year (24-month) usefullife.
Prepare a pro formaincome statement for the quarter.
Prepare a pro formabalance sheet at the end of the quarter.
Prepare a pro forma statement of cash flows for thequarter.
Required J
Prepare a pro formastatement of cash flows for the quarter. (Amounts to be deductedshould be indicated by a minus sign.)
BAIRD COMPANY Pro Forma Statement of Cash Flows For the Quarter Ended December 31, 2019 Cash flows from operatingactivities Net cash flows from operatingactivities $0 Cash flows from investingactivities Cash flow from financingactivities $0
Prepare a pro formabalance sheet at the end of the quarter. (Amounts to be deductedshould be indicated by a minus sign.)
BAIRD COMPANY Pro Forma Balance Sheet December 31, 2019 Assets 0 Total assets $0 Liabilities Equity Total liabilities and equity $0
Required H
Required I
Required J
Prepare a pro formaincome statement for the quarter.
BAIRD COMPANY Pro Forma Income Statement For the Quarter Ended December 31, 2019 Salesrevenue $1,092,000 Costof goods sold Grossmargin 1,092,000 Selling and administrative expenses Operating income 1,092,000 Interest expense Net income $1,092,000
October sales areestimated to be $300,000, of which 40 percent will be cash and 60percent will be credit. The company expects sales to increase atthe rate of 20 percent per month. Prepare a sales budget.
The company expects tocollect 100 percent of the accounts receivable generated by creditsales in the month following the sale. Prepare a schedule of cashreceipts.
The cost of goods soldis 70 percent of sales. The company desires to maintain a minimumending inventory equal to 20 percent of the next monthâs cost ofgoods sold. However, ending inventory of December is expected to be$12,100. Assume that all purchases are made on account. Prepare aninventory purchases budget.
The company pays 80percent of accounts payable in the month of purchase and theremaining 20 percent in the following month. Prepare a cashpayments budget for inventory purchases.
Budgeted selling andadministrative expenses per month follow:
Salary expense(fixed) | $ | 18,100 | |
Salescommissions | 4 | % of Sales | |
Suppliesexpense | 2 | % of Sales | |
Utilities(fixed) | $ | 1,500 | |
Depreciation onstore fixtures (fixed)* | $ | 4,100 | |
Rent(fixed) | $ | 4,900 | |
Miscellaneous(fixed) | $ | 1,300 | |
*The capital expenditures budget indicates that Baird will spend$119,400 on October 1 for store fixtures, which are expected tohave a $21,000 salvage value and a two-year (24-month) usefullife.
Prepare a pro formaincome statement for the quarter.
Prepare a pro formabalance sheet at the end of the quarter.
Prepare a pro forma statement of cash flows for thequarter.
Required J
Prepare a pro formastatement of cash flows for the quarter. (Amounts to be deductedshould be indicated by a minus sign.)
|
Prepare a pro formabalance sheet at the end of the quarter. (Amounts to be deductedshould be indicated by a minus sign.)
|
Required H
Required I
Required J
Prepare a pro formaincome statement for the quarter.
|