A company began operations in March with cash and common stock of $36,000. The company made $582,000 in net income in its first month. It performed print jobs for customers and billed these customers $900,000. The company collected half of its receivables by the end of the month. The company had a cost of goods sold of $162,000 paid for in cash and $6,000 inventory left over at the end of the month. The company's employees earned wages but those are not paid until the first of April. This was the company’s only liability. How would I calculate the income statement and balance sheet for the end of March?
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
A company began operations in March with cash and common stock of $36,000. The company made $582,000 in net income in its first month. It performed print jobs for customers and billed these customers $900,000. The company collected half of its receivables by the end of the month. The company had a cost of goods sold of $162,000 paid for in cash and $6,000 inventory left over at the end of the month. The company's employees earned wages but those are not paid until the first of April. This was the company’s only liability.
How would I calculate the income statement and balance sheet for the end of March?
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