ACC 1820 Project 4 Ch 7 Use Question 11 from HW6 on CONNECT

ACC 1820 Project 4 (Ch 7) Use Question 11 from HW6 on CONNECT to complete the project requirements. represent check figures provided 1) Name tems (S points) Let\'s prepare a balance sheet for Garden Sales, Inc. at the BEGINNING of the quarter- March 31. The CONNECT problem provides beginning cash, Inventory and accounts payable balance as of March 31. To complete the balance sheet, we will have to calculate a few balances. Look at the Schedule of Expected Cash Collections that you completed on CONNECT (CONNECT results) Remember the accounts receivable represents the sales that have already been made but payment is expected in the future. What would the accounts receivable balance be as of March 31? a) b) Complete the asset side of the balance sheet including total assets c) Include the \"total asset\" amount in the \"total liability& SH Equity\" box. Include the accounts payable amount from CONNECT and calculate the amount of retained carnings such that the balance sheet will balance Garden Sales, Inc Balance Sheet March 31 Cash Accounts Receivable Inventory Accounts Payable Common Stock Retained Earnings Total liabilities & SH Equity 100,000 Total current assets Plant Assets, net 350,000 Total SH Equity Total Assets 554ch The company\'s president is concerned about its ability to borrow money on its line of credit. The bank has indicated they will reduce the total loan balance limit to $100,000. Because of this, the president wants to know how increased collection efforts and reduced inventory levels will impact the cash budget. The president suggests that sales continue to be 20% for cash and 80% on credit. However, credit sales for April, May, and June will be collected over a three-month period with 25% collected in the month of sale, 65% collected in the month following sale, and 10% in the second month following sale. This change in policy will not affect collection of sales from February and March. (Assume those are unchanged from your CONNECT problem.)

Solution

11. a) Beginning Wood Inventory = 12400 x 3 board feet x 20% = 7440 board feet

b)

c) Beginning Metal Inventory = 12400 x 0.8 pounds x 20% = 1984 pounds

d)

Direct Materials Budget - Wood
	April	May	June	Quarter
Required production in units	12400	12183	5600	30183
x 3 board feet per unit	x 3	x 3	x 3	x 3
Board feet of wood needed to meet production	37200	36549	16800	90549
Add: Desired ending raw materials inventory-wood	7310	3360	4800	4800
Total board feet of wood raw materials needed	44510	39909	21600	95349
Less: Beginning raw materials inventory	7440	7310	3360	7440
Board feet of wood raw materials to be purchased	37070	32599	18240	87909