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Charles Cocoa Corporation (CCC) has gathered the following data pertaining to the preparation of its...

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Accounting

Charles Cocoa Corporation (CCC) has gathered the following data pertaining to the preparation of its 2020 budgeted balance sheet:

  • Accounts receivable is typically 3% of sales revenue.
  • The company has always maintained a cash balance of $57,000.
  • CCC has budgeted $125,000 to purchase new machinery for 2020. CCC does not expect to sell any existing machinery. The purchase of machinery will be financed entirely through a note payable.
  • Depreciation expense for 2020 is expected to amount to $5,000.
  • Total budgeted revenue is $200,000 and total budgeted expenses is $150,000.
  • Accounts payable is typically 20% of current year expenses.

A selection of CCCs December 31, 2019 balances are as follows

Capital Assets 100,000

Accumulated Depreciation 2,500

Notes Payable 0

Stockholders Equity 75,500

Prepare a budgeted balance sheet for December 31, 2020.

Charles Cocoa Corporation

Budgeted Balance Sheet

As at December 31, 2020

Assets

Cash

Accounts Receivable

Capital Assets

Accumulated Depreciation

total Assets

liabilities

Accounts Payable

Notes Payable

total liabilities

Stockholder's equity

total liabilities and Stockholder's equity

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