Consider the second balance sheet you created and provide an explanation of the likely other balance accounts that would change (increase/decrease/remain the same) in response to such a significant increase in net income.

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Assignment Question

The Management of FastCopy Inc, a Photocopying center located on Morris Ave, In Union NJ, completed the following data for use in preparing its budgeted balance sheet for the next year: Ending Balances Cash ? Accounts Recievable $8,100 Supplies Inventory $3,200 Equipment $34,000 Accumulated Depreciation $16,000 Accounts Payable $1,800 Common Stock $5,000 Retained Earnings ? The beginning balance of retained earnings was $28,000, net income is budgeted to be $11,500, and dividends are budgeted to be $4,800. Prepare a properly titled and formatted balance sheet for FastCopy, Inc. (Proper formatting and accuracy) Prepare a 2nd properly formatted balance sheet with net income budgeted to be $87,500 and dividends are budgeted to be $10,000. Consider the second balance sheet you created and provide an explanation of the likely other balance accounts that would change (increase/decrease/remain the same) in response to such a significant increase in net income. A properly formatted balance sheet would include the proper heading and the Assets / Liabilities / Shareholders Equity appearing in the proper columns with column totals that equal as per the accounting equation: Assets = Liabilities and Shareholder Equity.






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