7-3 Company Leader, S A.

, presents its balance sheet at December 31, 2001 and calls for the preparation of the statement of financial position budgeted for 2002.

Balance sheet at December 31, 2001

Assets: CURRENT ASSETS Cash Customers F. I. ARTICLES ENDING all circulating LIABILITIES A short-term Suppliers DOCUMENTS TO PAY all Short-Term Long term Notes payable all liabilities Equity Contributed capital Capital won All Capital

$ 2,000 $ 15,000 $ 5,000 $ 22,000

$ $ $

30,000 5,000 35,000

No circulante Terreno $ 43,000 Edificio y equipo $ 40,000 Menos depreciacin acumulada 5 000 -$ 5,000 all no circulante $ 78,000

$ $

5,000 40,000

$ $ $

40,000 20,000 60,000

ALL ASSETS:

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TOTAL LIABILITIES + EQUITY $ 100,000

1. The sales budget is $ 90,000

2 . The Raw Materials Required budget is equal to 25 % of sales budget

3. The materials purchases budget is $ 32,000. 4. The budget for labor is equal to 30 % of the budgeted sales. 5. The budget of indirect manufacturing costs is 10 % higher than the labor 6. The budget for operating expenses is $ 7,000. 7. El inventario final deseado de artculos terminados es de $4 600. 8. 85% of 2002 sales charged during this period , while the remaining 15 % is charged on the next. 9. The 2001 account customers will be charged in 2002.. 10. 80% of material purchases will be paid in 2002. The remaining 20 % will be paid in the next 11. Depreciation budgeted amounts to $ 2000 ( corresponding to GIF) . 12. A loan of $ 15,000 in the short term will be asked . 13. Accounts payable 2001 will be settled . 14. The minimum cash balance to be maintained is $ 2,000 . Required: Prepare the statement of financial position budgeted for 2002. VARIABLES CASH CUSTOMERS INVENTORY ITEMS FINAL FINISH C * P PROVIDER NOTES PAYABLE LONG-TERM OBLIGATIONS SALES OF BUDGET OPERATING EXPENSES INVENTORY FINAL ART. ENDED SHORT TERM LOAN DEPRECIATION MINIMUM BALANCE CASH MATERIAL PURCHASES

$ $ $ $ $ $ $ $ $ $ $ $ $

2,000 15,000 5,000 30,000 5,000 5,000 90,000 7,000 4,600 15,000 2,000 2,000 32,000

VARIABLES CASH CUSTOMERS INVENTORY ITEMS FINAL FINISH C * P PROVIDER NOTES PAYABLE LONG-TERM OBLIGATIONS SALES OF BUDGET OPERATING EXPENSES INVENTORY FINAL ART. ENDED SHORT TERM LOAN DEPRECIATION MINIMUM BALANCE CASH MATERIAL PURCHASES $ $ $ $ $ $ $ $ $ $ $ $ $ 2,000 15,000 5,000 30,000 5,000 5,000 90,000 7,000 4,600 15,000 2,000 2,000 32,000

STATEMENT BUDGETED SALES $ (-) COST OF SALES $ (=) GROSS PROFIT ON SALES $ (-) OPERATING EXPENSES $ (=) OPERATING INCOME $

90,000 79,600 10,400 7,000 3,400

COSTO OF SALES CASH FLOW BUDGETED BUDGETED BALANCE SHEET

COST OF SALES
RAW MATERIAL USED 25% + DIRECT LABOR 30% (+) INDIRECT COST OF MANUFACTURE (CIF) (=) COST OF PRODUCTION (+) INITIAL INVENTORY FINISHED PRODUCTS (=) AVAILABLE FOR SALE (-) FINAL INVENTORY FINISHED PRODUCTS (=) COST OF SALES $ $ $ $ $ $ $ $ 22,500 27,000 29,700 79,200 5,000 84,200 4,600 79,600

Clic to return VARIABLES

CASH FLOW BUDGETED OPERATIONAL INPUTS CHARGED SALES C * C THE PREVIOUS YEAR SHORT TERM LOAN TOTAL INPUTS OUTPUT OPERATION PAYMENT OF PURCHASES OF RAW MATERIAL PAYMENT C * P PREVIOUS YEAR PAYMENT DOC. PAYMENT OF LABOR CIF (SIN TheValue DEPRECIATION) OPERATING EXPENSES TOTAL OUTPUT DIFFERENCE BETWEEN INPUT AND OUTPUT (+) MINIMUM CASH BALANCE (=) EXCESS OR MISSING FINANCING EQUITY BALANCE AT END OF YEAR 85% $ 100% $ $ $ 76,500 15,000 15,000 106,500 Clic to return COST OF SALES

80% 100% 100% 100% 100%

$ $ $ $ $ $ $ $ $ $ $ $

25,600 30,000 5,000 27,000 27,700 7,000 122,300 (15,800) 2,000 (13,800) 15,800 2,000

BALANCE SHEET BUDGETED ASSETS CASH ACCOUNTS RECEIVABLE ENDING INVENTORY RAW MATERIAL ENDING INVENTORY FINISHED PRODUCT FIXED ASSETS LAND BUILDING ACCUMULATED DEPRECIATION TOTAL ASSETS $ $ $ $ 2,000 13,500 9,500 4,600 LIABILITIES ACCOUNTS PAYABLE SUPPLIERS SHORT-TERM CREDIT LONG-TERM OBLIGATIONS TOTAL LIABILITIES
Clic TO CASH FLOW BUDGETED

$ $ $ $ $ $ $

6,400 15,000 20,800 42,200 63,400 40,000 23,400

$ $ $ $

EQUITY 43,000 STOCKHOLDERS 'EQUITY 40,000 INCOME (7,000)

105,600 TOTAL LIABILITIES AND SHAREHOLDERS 'EQUITY $ 105,600 Clic TO RETURN HOME