Problem: SIMID SPORTS COMPANY
Estimated Balance Sheet December 31, 2011
Assets
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 18,000
Accounts receivable . . . . . . . . . . . . . . . . . 262,500
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . 75,000
Total current assets . . . . . . . . . . . . . . . . . . 355,500
Equipment . . . . . . . . . . . . . . . . . . . $ 270,000
Less accumulated depreciation . . . . .33,750.. 236,250
Total assets . . . . . . . . . . . . . . . . . . . . . . . . $ 591,750
Liabilities and Equity
Accounts payable . . . . . . . . . . . . . . . . . . . $ 180,000
Bank loan payable . . . . . . . . . . . . . . . . . . . 7,500
Taxes payable ( due 3/ 15/ 2012) . . . . . . . . . 45,000
Total liabilities . . . . . . . . . . . . . . . . . . . . . $ 232,500
Common stock . . . . . . . . . . . . . . . . . . . . . 236,250
Retained earnings . . . . . . . . . . . . . . . . . . . 123,000
Total stockholders' equity . . . . . . . . . . ............................ . 359,250
Total liabilities and equity . . . . . . . . . . ....................... . . $ 591,750
Required:
Prepare a master budget for each of the first three months of 2012; include the following component budgets (show supporting calculations as needed, and round amounts to the nearest dollar):
1. Monthly sales budgets (showing both budgeted unit sales and dollar sales).
2. Monthly merchandise purchases budgets.
3. Monthly selling expense budgets.
4. Monthly general and administrative expense budgets.
5. Monthly capital expenditures budgets.
6. Monthly cash budgets.
7. Budgeted income statement for the entire first quarter (not for each month).
8. Budgeted balance sheet as of March 31, 2012.