ALLIANCE PRINTING SUPPLY Balance Sheet March 31, 2018 Assets Current Assets: Cash $ 50,700 Accounts Receivable 15,500 Merchandise Inventory 12,000 Total Current Assets $ 78,200 Property. Plant, and Equipment: Equipment and Fixtures 80,500 Less: Accumulated Depreciation (12,900) 67,600 Total Assets $ 145,800 Liabilities Current Liabilities: Accounts Payable $ 8,600 Stockholders' Equity Common Stock, no par $ 38,000 Retained Earnings 99,200 Total Stockholders' Equity 137,200 Total Liabilities and Stockholders' Equity $ 145,800
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.
Completing a comprehensive budgeting problem—merchandising Company
Alliance Printing Supply of Baltimore has applied for a loan. Its bank has requested a
As Alliance Printing Supply’s controller, you have assembled the following additional information:
- April dividends of $7,000 were declared and paid.
- April capital expenditures of $16,300 budgeted for cash purchase of equipment.
- April depreciation expense, $1,000.
- Cost of goods sold, 40% of sales.
- Desired ending inventory for April is $22,400.
- April selling and administrative expenses include salaries of $37,000, 30% of which will be paid in cash and the remainder paid next month.
- Additional April selling and administrative expenses also include miscellaneous expenses of 10% of sales, all paid in April.
- April budgeted sales, $89,000, 80% collected in April and 20°/0 in May.
- April cash payments of March 31 liabilities incurred for March purchases of inventory, $8,600.
- April purchases of inventory, $8,600 for cash and $37,400 on account. Half the credit purchases will be paid in April and half in May.
Requirements
- Prepare the sales budget for April.
- Prepare the inventory, purchases, and cost of goods sold budget for April.
- Prepare the selling and administrative expense budget for April.
- Prepare the schedule of cash receipts from customers for April.
- Prepare the schedule of cash Payments of Selling and administrative expenses for April.
- Prepare the
cash budget for April. Assume the company does not use short-term financing to maintain a minimum cash balance. - Prepare the budgeted income statement for April.
- Prepare the budgeted balance sheet at April 30, 2018
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