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3) The company "Leader SA" presents its balance sheet at December 31, 2001 and calls for the preparation of the statement of for 2002:
BALANCE SHEET
At December 31, 2001 ASSETS CURRENT Cash Customers Finished Goods Inventory TOTAL CURRENT NO CURRENT Ground Building and Equipment Accumulated Depreciation TOTAL NON-CURRENT LIABILITIES SHORT TERM suppliers Notes payable
$ $ $ $
TOTAL ASSETS
100,000
It also provides the following information: 1) The sales budget is $ 90,000 budgeted Sales = $ 90,000
2)The materials budget required is equal to 25% of sales budget budgeted Sales = Required MP = Required MP = 3) The materials purchases budget is $ 32,000 $ 90,000 25% Ventas presupuestadas 22,500
Purchase Materials = 4)The work budget is equal to 30% of budgeted sales budgeted Sales = Labor = Labor =
32,000
5) The budget of indirect manufacturing costs is 10% higher than the labor budgeted Sales = Labor = Labor= $ 90,000 30% budgeted Sales 27,000 Indirect manufacturing costs = Indirect manufacturing costs = Indirect manufacturing costs =
6) The operating expense budget is $ 7000 Operating Expenses = Depreciation budgeted = Operating Expenses = $ $ 7,000 Con deprec $ 2,000 5,000 sin deprec
7) The desired ending inventory of finished goods is $ 4,600 Desired Ending Inventory of Finished Goods = $ 4,600
8) 85% of 2002 sales are charged in that period while 15% will be charged on the following collection: 2002 = 2003 = 85% 15% Sales Sales 2002 2003 90,000 $ 76,500 $ 13,500
budgeted Sales 9) The 2001 account customers will be charged in 2002 Account Customers 2001 = TOTAL
10) It will pay 80% of purchases of materials in 2002. The remaining 20% will be paid in the next period Payments: 2002 = 2003 = 80% 20% Purchase Materials Purchase Materials 2002 2003
Compra de Materiales
32,000 $
25,600 $
6,400
11)The budgeted depreciation is $ 2000 (corresponds to GIF) Depreciation budgeted = $ 12) It will borrow $ 15,000 short-term Short term loan = 13)They settled accounts payable 2001 pay Suppliers 2001 = $ $ 15,000 2,000
14) The minimum cash balance that must be maintained is $ 2000 Minimum cash balance = $ 2,000
STATEMENT
El Lder S.A
to December 31, 2002 Sales (-) Cost of Sales (=) Gross profit on sales (-) Operating Expenses (=) Operating Income $ $ $ $ $ 90,000 (79,600) 10,400 (7,000) 3,400
$ $ $ $ $ $ $ $ $
TOTAL ASSETS
105,600
SHEET
31, 2001
$ $ $
Obligations payable TOTAL LIABILITIES CAPITAL ACCOUNTANT Capital contributed TOTAL CAPITAL TOTAL LIABILITIES + HERITAGE
$ $
5,000 40,000
$ $ $ $
$ $
TOTAL $ 90,000
TOTAL
32,000
N 7.3
COST OF SALES BUDGETED Raw Material Used (+) Direct Labor (+) Manufacturing expenses (=)COST OF PRODUCTION (+) Opening Stock of Finished Goods (=) Finished Goods Available (-) Finished Goods Ending Inventory (=) COST OF SALES
BUDGETED
S.A
31, 2002 $ $ $ $ $ $ $ $ 22,500 27,000 29,700 79,200 5,000 84,200 (4,600) 79,600
MENT
S.A
31, 2002
BUDGET
S.A
31, 2002 2002 76,500 15,000 15,000 106,500
$ $ $ $
$ $ $ $ $ $ $ $
$ $ $
T BUDGETED
S.A
bre de 2002
$ $ $
Obligations payable TOTAL LIABILITIES CAPITAL ACCOUNTANT Capital contributed TOTAL CAPITAL TOTAL LIABILITIES + HERITAGE
$ $
5,000 42,200
$ $ $ $