Sep 19, 2017

PROBLEM 8-27 COMPLETING A MASTER BUDGET [LO2, LO4, LO7, LO8, LO9, LO10] NORDIC COMPANY, A…

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Problem 8-27 Completing a Master Budget [LO2, LO4, LO7, LO8, LO9, LO10]
Nordic Company, a merchandising company, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparation of the master budget for the second quarter.
a.
As of March 31 (the end of the prior quarter), the company’s balance sheet showed the following account balances:
Cash $ 9,600
Accounts receivable 50,400
Inventory 13,320
Buildings and equipment (net) 215,700
Accounts payable $ 19,890
Capital stock 190,000
Retained earnings 79,130
$ 289,020 $ 289,020


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