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- July 18, 2021 at 3:23 pm #628193
Blitzen Co manufactures and sells a single product. It is preparing budgets for the three-month period ending 31 December 20X5. The budget is virtually complete and the remaining task is to prepare the budgeted statement of financial position as at 31 December 20X5. Sales of the product and purchases of materials are all made on credit terms. There were no purchases or disposals of non-current assets in the period to 31 December 20X5. Entries marked ‘n/a’ are yet to be calculated. The following data is available:
Statement of financial position at 30 September 20X5
Assets $ $
Non-current assets (net). 10,000
Current assets
Raw material inventory 4,000
Trade receivables 3,000
Cash 1,000
8,000
18,000
Equity and liabilities
Ordinary shareholders funds 16,000Current liabilities
Trade payables 2,000
18,000Budgeted statement of financial position at 31 December 20X5
Assets $ $
Non-current assets (net). n/a
Current assets
Raw material inventory 4,500
Trade receivables n/a
Cash n/aEquity and liabilities
Ordinary shareholders funds 19,500Current liabilities
Trade payables n/aBudgeted statement of profit or loss for the quarter ending 31 December 20X5
$
Sales 25,000
Direct materials 14,000
Direct wages 6,000
Depreciation 1,500
Net profit/(loss). 3,500Cash budget for the quarter ending 31 December 20X5
$
Receipts from customers 23,000
Payments
Materials 12,000
Wages 6,000
Net cash inflow 5,000What figure should be included in the budgeted statement of financial position as at 31 December 20X5 for each of the following items?
Non-current assets. $____________
Receivables. $____________
Cash. $____________
Payables. $____________can you assist me, sir, please?
will the NCA be $8500
receivable $5000
cash $ 6000
payables $4000 ?July 18, 2021 at 3:45 pm #628206Yes, all four seem to be correct 🙂
July 18, 2021 at 3:48 pm #628208Thank you so much sir for your confirmation.
I have to give my f2 exam tomorrow.July 18, 2021 at 4:15 pm #628213You are welcome, and I hope all goes well for you tomorrow 🙂
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