The Following Information Is Available for Jergenson Company

Essay

The following information is available for Jergenson Company:
a.The Cash Budget for March shows a bank loan of $10,000 and an ending cash balance of $48,000.
b.The Sales Budget for March indicates sales of $120,000.Accounts receivable is expected to be 70% of March sales.
c.The Merchandise Purchases Budget indicates that $90,000 in merchandise will be purchased in March on account.Ending inventory for March is predicted to be 600 units at a cost of $35 per unit.Purchases on account are paid 100% in the month following the purchase.
d.The Budgeted Income Statement shows depreciation expense of $4,000,net income of $44,000 and $21,000 in income tax expense for the quarter ended March 31.Accrued taxes will be paid in April.
e.The Balance Sheet for February 28 shows equipment of $77,000 with accumulated depreciation of $28,000,common stock of $25,000 and retained earnings of $8,000.There are no changes budgeted in the equipment or common stock accounts for March
Prepare a budgeted balance sheet as of March 31.