734 AR(417) OA(GO 257
SUMLIN Inc. Balance Sheet December 31, 20X1
1484 750 734
$90 257 Accounts receivable (net) Other current assets 734 Long-term assets 150 $750 + $250 $1000 Less: Accumulated depreciation -10 000 +15 600 250 150 Total assets $960 1404 Accounts payable 180 101400 The Mortgage payable 320 HSS, 360 * 9,540 Common stock 005, Retained earnings 220 1130 420 Total liabilities $960 1404 SUMLIN, Inc. Income Statement for the Year Ending December 31, 20X1 Revenues 51,600 + 201,600 061 Expenses. '500 Net Income $490 1460 Other information: Jnume-460 Revenues for 20X2 are expected to increase by 20% b. Fixed expenses will increase from $400 to $500, the remaining expenses will continue to vary directly and proportionally with revenues. c. Accounts receivable at December 31, 20X2 are expected to increase by an amount equal to 10% of 20X2 revenue. Sumlin plans a fixed long-term asset addition on January 1, 20X2 with a cost of $250 All fixed (long-term) assets have a useful life of 10 years, are depreciated on a straight-line basis and have no anticipated salvage value. e. Accounts payable at December 31, 20X2 are expected to decrease by an amount equal to 20% of total expenses. 1010 f. The 20X payment on the principal only of the mortgage is $40 SUMLIN g. By plans to pay a dividend of $50 during 20X2 The other current assets at December 31, 20X2 are expected to increase by $15 to $60 at December 31, 20X2. i. During 20X2, common stock was sold for $300. Required: 32. Net income for 20X2 was 460 33. Total assets at December 31, 20X2 were 1484 34. Total equities at December 31, 20X2 were 1130 2028 35. Total cash receipts from customers for 20X2 were 1720 1861 141 2020 9/^ for ex 1506 ONCRA 001S-E cash 90 38. Total cash payments for all 1861 3M ' expense that is $20 of principal and $20 of interest expense Codn 39. Net income for 20X2 was 40 Total assets at December 31, 20X2 were Total equities at December 31, 20X2 were 42 Total cash receipts from customers for 20X2 were. 43. Total cash receipts from all sources for 20X2 were 44. Total cash payments for expenses during 20X2 were a 0unp aodnd goeuaod oS 46. In the space provided below, indicate the factors that would be considered in preparing a budget for the next period.
