The Brisbane National Bank has asked Elemenop Ltd. for a budgeted balance sheet for the year ended 31 December 2019. The following information is available:
1. The cash budget shows an expected cash balance of $50,000 at 31 December 2019.
2. The 2019 sales budget shows total annual sales of $600,000. All sales are made on account and accounts receivable at 31 December 2019 are expected to be 15% of annual sales.
3. The merchandise purchases budget shows budgeted cost of sales for 2019 of $300,000 and ending merchandise inventory of $70,000. Twenty per cent of the ending inventory is expected to have not yet been paid at 31 December 2019.
4. The 31 December 2018 balance sheet includes the following balances: Equipment $196,000, Accumulated depreciation $80,000, Share capital $180,000 and Retained earnings $32,000.
5. The budgeted profit for 2019 includes the following: depreciation on equipment $10,000, income taxes $16,000, and profit $74,000. The income taxes will not be paid until 2018.
6. In 2019, 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 statement of financial position at 31 December 2019.

Question

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The Answer of The Brisbane National Bank has asked Elemenop Ltd. for a budgeted balance sheet for the year ended 31 December 2019. The following information is available:
1. The cash budget shows an expected cash balance of $50,000 at 31 December 2019.
2. The 2019 sales budget shows total annual sales of $600,000. All sales are made on account and accounts receivable at 31 December 2019 are expected to be 15% of annual sales.
3. The merchandise purchases budget shows budgeted cost of sales for 2019 of $300,000 and ending merchandise inventory of $70,000. Twenty per cent of the ending inventory is expected to have not yet been paid at 31 December 2019.
4. The 31 December 2018 balance sheet includes the following balances: Equipment $196,000, Accumulated depreciation $80,000, Share capital $180,000 and Retained earnings $32,000.
5. The budgeted profit for 2019 includes the following: depreciation on equipment $10,000, income taxes $16,000, and profit $74,000. The income taxes will not be paid until 2018.
6. In 2019, 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 statement of financial position at 31 December 2019.

The Brisbane National Bank Has Asked Elemenop Ltd