Budgeting – Vermillion Chemical Company manufactures a red industrial dye
BACC216 Management Accounting 2 Semester 2, 2017 Assignment – Part 1 Vermillion Chemical Company Vermillion Chemical Company manufactures a red industrial dye. The Vermillion Chemical Company is in the process of preparing its 2018 master budget and you (a group of two trainee management accountants) are presented with the following information in mid-August 2017: 1. The December 31, 2017, projected balance sheet for the company is shown below: Vermillion Chemical Company Projected Balance Sheet As at 31 December 2017 ASSETS LIABILITIES AND SHAREHOLDERS’ EQUITY Cash 5,080 Notes payable 25,000 Accounts receivable 26,500 Accounts payable 2,148 Raw materials inventory 800 Dividends payable 10,000 Finished goods inventory 2,104 Total liabilities 37,148 Prepaid insurance 1,200 Shareholders’ funds Building 300,000 Paid in capital 150,000 Accumulated depreciation…
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