FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Related questions
Question
You are provided with the following information taken from Splish Brothers Inc.’s March 31, 2022, balance sheet.
| Cash | $ 12,330 | |
| 20,370 | ||
| Inventory | 36,900 | |
| Property, plant, and equipment, net of depreciation | 120,500 | |
| Accounts payable | 22,640 | |
| Common stock | 153,800 | |
| 12,460 |
Additional information concerning Splish Brothers Inc. is as follows.
| 1. | Gross profit is 26% of sales. | |||
| 2. | Actual and budgeted sales data: | |||
| March (actual) | $47,000 | |||
| April (budgeted) | 73,100 |
| 3. | Sales are both cash and credit. Cash collections expected in April are: | |||||
| March | $18,800 | (40% of $47,000) | ||||
| April |
43,860
|
(60% of $73,100) | ||||
|
$62,660
|
| 4. | Half of a month’s purchases are paid for in the month of purchase and half in the following month. Cash disbursements expected in April are: | |||||
|
Purchases March
|
$22,640 | |||||
| Purchases April |
28,310
|
|||||
|
$50,950
|
| 5. | Cash operating costs are anticipated to be $11,510 for the month of April. | |
| 6. | Equipment costing $2,650 will be purchased for cash in April. | |
| 7. | The company wishes to maintain a minimum cash balance of $12,970. An open line of credit is available at the bank. All borrowing is done at the beginning of the month, and all repayments are made at the end of the month. The interest rate is 14% per year, and interest expense is accrued at the end of the month and paid in the following month. |
Prepare a
Transcribed Image Text:### Form Fields for Data Entry
This educational website provides a form with a variety of fields for data entry, which appear as follows:
1. **Text Input Fields:**
- There are three text input fields where users can enter information. Each field spans the full width of the form and includes a dropdown menu at the end, which may be used to select additional options related to the input.
2. **Dropdown Menus:**
- Two dropdown menus are located at the left side of two separate input fields. These dropdowns are followed by colons, indicating that the selections made will correspond to the input that follows.
3. **Additional Input Fields:**
- Two additional small rectangular input fields are located to the right of the main input fields. These may be used for entering secondary information or selecting supplementary options.
4. **Currency Input Field:**
- At the bottom right, there is a field for entering a monetary value, denoted by the “$” symbol. This field is intended for numeric input related to financial data.
### Usage of the Form Fields
- **First Three Text Fields:**
Each of these fields could be for entering major portions of data, such as user names, addresses, or other primary information specifics. The accompanying dropdown menus might allow users to define the type of data they are entering, e.g., home vs. work addresses.
- **Dropdown Menus with Input Fields:**
These fields seem suitable for detailed data entry where a predefined category can be selected from the dropdown menu followed by specific details in the input box. Examples could include specifying a type of identifier (like a license number) or a category for entry followed by relevant details.
- **Additional Input Fields:**
The two additional input fields may serve for secondary data that supports or specifies the details entered in the main input fields.
- **Monetary Input Field:**
The monetary field, indicated by the dollar sign, is explicitly designated for financial amounts, such as pricing, fees, or other financial figures.
### Explanation
The form layout demonstrates a structured method for gathering comprehensive and categorized information. The combination of text fields, dropdown menus, and specified input types allows for efficient and organized data collection. Users should fill in each section attentively, selecting appropriate options from the dropdown menus and ensuring numerical accuracy in the monetary field to maintain data integrity.
Transcribed Image Text:### SPLISH BROTHERS INC.
### Cash Budget
---
**Introduction:**
This section contains an image depicting the layout for the cash budget of "Splish Brothers Inc." The cash budget template here is used for managing and monitoring the company's cash inflows and outflows. Below is a detailed explanation of the components and how to fill out the template.
**Template Breakdown:**
1. **Header:**
- **Company Name:** SPLISH BROTHERS INC. (pre-filled)
- **Title:** Cash Budget (pre-filled)
2. **Period Selection:**
- A dropdown menu where users can select the specific period for the cash budget (e.g., by month or quarter).
3. **Cash Components:**
- **Cash Receipts Section:**
- A series of dropdown menus and text boxes to input different sources of cash receipts. It includes spaces for describing the receipt type and entering the amounts in the corresponding text boxes.
- **Cash Payments Section:**
- Similarly, there are dropdown menus and text boxes to record various types of cash payments. Users can specify the payment type and input the amounts.
4. **Calculation Fields:**
- **Total Cash Receipts:** A designated field for the sum of all cash receipts.
- **Total Cash Payments:** A field to calculate and display the total cash payments incurred.
- **Net Cash Flow:** Calculated as (Total Cash Receipts - Total Cash Payments).
5. **Additional Features:**
- Each row is equipped with a dropdown menu and a corresponding text box to select and specify different categories of cash flow, such as salaries, rent, sales revenue, etc.
- There are empty text boxes aligned horizontally with each dropdown menu for entering financial values in dollars ($).
**Graphical Representation:**
- No specific graphs or diagrams are included in this layout, but it is structured in a tabular format that is conducive to data input and subsequent calculation.
---
After filling in the relevant details and amounts, this template can help Splish Brothers Inc. maintain a clear and organized record of their cash flow activities over the selected period. This tool is essential for effective financial planning and budgeting.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution
Trending nowThis is a popular solution!
Step by stepSolved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- The following data was obtained from the current financial statements for Kelly Corporation: Net sales..... $30,000 Average total assets.. Cost of goods sold..... Average common stockholders' Net income.... Preferred dividends.. Calculate: 1. Gross Profit Percentage $50,000 $10,500 equity... $35,000 . $4,500 $500 %arrow_forwardRefer to the following financial statements for Crosby Corporation: CROSBY CORPORATION Income Statement For the Year Ended December 31, 2011 Sales $4,240,000 Cost of goods sold 2,810,000 Gross profit $1,430,000 Selling and administrative expense 738,000 Depreciation expense 236,000 Operating income $456,000 Interest expense 88,000 Earnings before taxes $368,000 Taxes 173,000 Earnings after taxes $195,000 Preferred stock dividends 10,000 Earnings available to common stockholders $185,000 Shares outstanding 150,000 Earnings per share $1.23 Statement of Retained Earnings For the Year Ended December 31, 2011 Retained earnings, balance, January 1, 2011 $320,500 Add: Earnings available to common stockholders, 2011 $185,000 Deduct: Cash dividends declared and paid in 2011 $181,000 Retained earnings, balance, December 31, 2011 $324,500 Comparative Balance Sheets For 2010 and 2011 Year-End 2010 ($) Year-End 2011 ($) Assets Current assets: Cash 113,000 481,600 Accounts receivable (net)…arrow_forwardHorizontal Analysis of the Income Statement Income statement data for Winthrop Company for two recent years ended December 31, are as follows: Current Year Previous Year Sales $878,400 $720,000 Cost of goods sold 725,900 610,000 Gross profit $152,500 $110,000 Selling expenses $42,560 $38,000 Administrative expenses 38,400 32,000 Total operating expenses $80,960 $70,000 Income before income tax $71,540 $40,000 Income tax expenses 28,600 16,000 Net income $42,940 $24,000 a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round to one decimal place. Winthrop Company Comparative Income Statement For the Years Ended December 31 CurrentyearAmount PreviousyearAmount Increase(Decrease)Amount Increase(Decrease)Percent Sales $878,400 $720,000 $ % Cost of goods…arrow_forward
- Pharoah Company reports the following information (in millions) during a recent year: net sales, $13,875.0; net earnings, $693.8; total assets, ending, $5,600.0; and total assets, beginning, $5,500.0. (a) Calculate the (1) return on assets, (2) asset turnover, and (3) profit margin. (Round answers to 1 decimal place, e.g. 6.2% or 6.2.) 1. Return on assets 2. Asset turnover 7.9 % 2.5 times 3. Profit margin 19.9 %arrow_forwardSelected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $46,900; total assets, $179,400; common stock, $88,000; and retained earnings, $31,286.) Assets Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets CABOT CORPORATION Income Statement Cost of goods sold Gross profit For Current Year Ended December 31 Sales Operating expenses Interest expense Income before taxes Income tax expense Net income $ 18,000 9,000 33,800 Req 1 and 2 Reg 3 Req 4 Compute the debt-to-equity ratio. Numerator: $ 455,600 298,150 157,450 98,500 4,000 54,950 22,136 $ 32,814 30,150 3,050 154,300 Retained earnings $ 248,300 Total liabilities and equity 1 CABOT CORPORATION Balance Sheet December 31 of current year Liabilities and Equity Accounts payable Accrued wages payable Income taxes payable Complete this question by…arrow_forwardThe most recent financial statements for Bello Co. are shown here: Income Statement Balance Sheet Sales $ 19,400 Current assets $ 11,800 Debt $ 16,000 Costs 13,200 Fixed assets 28,350 Equity 24,150 Taxable income $ 6,200 Total $ 40,150 Total $ 40,150 Taxes (22%) 1,364 Net income $ 4,836 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 55 percent dividend payout ratio. What is the sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)arrow_forward
- The following information ($ in millions) comes from a recent annual report of Orinoco.com, Incorporated: Net sales $ 10,858 Total assets 4,405 End of year balance in cash 1,117 Total stockholders' equity 498 Gross profit (Sales − Cost of Sales) 2,601 Net increase in cash for the year 23 Operating expenses 2,049 Net operating cash flow 735 Other income (expense), net (24) Compute Orinoco's total liabilities at the end of the year. Multiple Choice $3,907 $3,166 $2,350 $4,405arrow_forwardIn its income statement for the year ended December 31, 2022, Splish Brothers Inc. reported the following condensed data. Prepare a multiple step income statement , and then calculate the profit margin and gross profit rate. Salaries and wages expenses $576,600 Loss on disposal of plant assets $103,540 Cost of goods sold 1,223,880 Sales revenue 2,740,400 Interest expense 89,460 Income tax expense 31,000 Interest revenue 80,600 Sales discounts 198,400 Depreciation expense 384,400 Utilities expense 136,400arrow_forwardThe financial statements for Armstrong and Blair companies for the current year are summarized below: Blair Company Statement of Financial Position Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) Other non-current assets Total assets Current liabilities. Long-term debt (10%) Share capital Contributed surplus Retained earnings Total liabilities and shareholders' equity Statement of Earnings Sales revenue (1/3 on credit) Cost of sales Expenses (including interest and income tax) Net earnings Accounts receivable (net) Inventory Long-term debt Other data: Share price year-end Income tax rate Dividends declared and paid Shares Outstanding $ Selected data from the financial statements for the previous year follows: Blair Company Armstrong Company 30,000 82,000 94,000 $ 50,000 28,000 86,000 $ $ 18 30% 46,000 15,000 Armstrong Company $ 36,000 $ 32,000 30,000 40,000 205,000 35,000 170,000 95,000 $ 536,000 $ 125,000 94,000 180,000 40,000 97,000 $ 536,000 $ 550,000…arrow_forward
- Following are the income statement and balance sheet items for Faison Corporation from the company’s books and records at the end of fiscal year-end 20x1: ($ millions) Contributed capital $1,702 Cost of sales 13,567 Cash 1,393 Long-term liabilities 3,719 Accounts receivable 2,662 Other current assets 604 Other long-term assets 2,079 Other current liabilities 1,299 Other operating expenses 1,212 Other non-operating expenses 161 Inventory 1,093 Accounts payable 2,595 Property, net 3,216 Retained earnings 1,209 Sales 16,463 Tax expense 256 Equity income, net of tax 34 Other equity 523 Required: Using the information above, prepare the company’s year-end income statement and a balance sheet.arrow_forwardFollowing are the data extracted from Alma Corporation, at the end of December 1, 2019: Sales …………14,000,500 Sales Return ……………. P 25,200 Purchases (net) . 2,400,000 Transportation inward … 32,000 Direct Labor …… 3,204,000 FOH (total) ………………….1,885,600 Sales salaries ….. 200,000 Advertising expense…… 155,000 Delivery Expense 65,000 During the year 25,000 units were completed: Inventories December, 2019 January, 2019 Finished Goods ………… P 467,400 ……………. P 620,000 Work in Process ……………….. 136,800 ..…………... 129,800 Materials …………………………. 196,000 …................. 176,000 Required: Compute for the following: (Show your solution in the space provided) 1. Total Factory Cost 2. Cost of Goods Manufactured 3. Per unit cost of goods manufactured 4. Cost of Goods Sold 5. Gross Profit and Net Profitarrow_forwardThe most recent financial statements for Assouad, Inc., are shown here: Income Statement Balance Sheet Sales $3,500 Current assets $4,000 Current liabilities $970 Costs 2,500 Fixed assets 6,200 Long-term debt 3,500 Taxable income $1,000 Equity 5,730 Taxes (25%) 250 Total $10,200 Total $10,200 Net income $750 Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 50 percent dividend payout ratio. As with every other firm in its industry, next year's sales are projected to increase by exactly 20 percent. What is the external financing needed?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education