The City National Bank has asked Donham, Inc. for a budgeted balance sheet for the year ended December 31, 2010. The following information is available:
1. The cash budget shows an expected cash balance of $75,000 at December 31, 2010.
2. The 2010 sales budget shows total annual sales of $900,000. All sales are made on account and accounts receivable at December 31, 2010 are expected to be 10% of annual sales.
3. The merchandise purchases budget shows budgeted cost of goods sold for 2010 of $600,000 and ending merchandise inventory of $105,000. 20% of the ending inventory is expected to have not yet been paid at December 31, 2010.
4. The December 31, 2009 balance sheet includes the following balances: Equipment $294,000, Accumulated Depreciation $120,000, Common Stock $270,000, and Retained Earnings $48,000.
5. The budgeted income statement for 2010 includes the following: depreciation on equipment $15,000, federal income taxes $24,000, and net income $66,000. The income taxes will not be paid until 2011.
6. In 2010, management does not expect to purchase additional equipment or to declare any dividends. It does expect to pay all operating expenses, other than depreciation, in cash.
Instructions
Prepare an unclassified budgeted balance sheet at December 31, 2010.

Question

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The Answer of The City National Bank has asked Donham, Inc. for a budgeted balance sheet for the year ended December 31, 2010. The following information is available:
1. The cash budget shows an expected cash balance of $75,000 at December 31, 2010.
2. The 2010 sales budget shows total annual sales of $900,000. All sales are made on account and accounts receivable at December 31, 2010 are expected to be 10% of annual sales.
3. The merchandise purchases budget shows budgeted cost of goods sold for 2010 of $600,000 and ending merchandise inventory of $105,000. 20% of the ending inventory is expected to have not yet been paid at December 31, 2010.
4. The December 31, 2009 balance sheet includes the following balances: Equipment $294,000, Accumulated Depreciation $120,000, Common Stock $270,000, and Retained Earnings $48,000.
5. The budgeted income statement for 2010 includes the following: depreciation on equipment $15,000, federal income taxes $24,000, and net income $66,000. The income taxes will not be paid until 2011.
6. In 2010, management does not expect to purchase additional equipment or to declare any dividends. It does expect to pay all operating expenses, other than depreciation, in cash.
Instructions
Prepare an unclassified budgeted balance sheet at December 31, 2010.

The City National Bank Has Asked Donham, Inc