BELTON PRINTING COMPANY Balance Sheet March 31, 2018 Assets Current Assets: Cash $ 51,100 Accounts Receivable 13,600 Merchandise Inventory 12,000 Total Current Assets $ 76,700 Property, Plant, and Equipment: Equipment and Fixtures 81, 100 Less: Accumulated Depreciation (12,400) 68,700 Total Assets $ 145,400 Liabilities Current Liabilities: Accounts Payable $ 8,300 Stockholders' Equity Common Stock, no par S 35,000 Retained Earnings 102, 100 Total Stockholders' Equity 137,100 Total Liabilities and Stockholders' Equity $ 145,400

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Completing a comprehensive budgeting problem—merchandising company

Belton Printing Company of Baltimore has applied for a loan. Its bank has requested a budgeted income statement for the month of April 2018 and a balance sheet at April 30, 2018. The March 31, 2018a balance sheet follows:

As Belton Printings controller, you have assembled the following additional information:

  • April dividends of $7,000 were declared and paid.
  • April capital expenditures of $17,000 budgeted for cash purchase of equipment.
  • April depreciation expense, $800.
  • Cost of goods sold, 55% of sales.
  • Desired ending inventory For April is $24,800.
  • April selling and administrative expenses includes salaries of $29,000, 20% 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, $86,000, 80% collected in April and 20% in May.
  • April cash payments of March 31 liabilities incurred for March purchases of inventory, $8,300.
  • April purchases of inventory, $22,900 for cash and $37,200 on account. Half the credit purchases will be paid in April and half in May.

Requirements

  1. Prepare the sales budget for April.
  2. Prepare the inventory, purchases, and cost of goods sold budget for April.
  3. Prepare the selling and administrative expense budget for April.
  4. Prepare the schedule of cash receipts from customers for April.
  5. Prepare the schedule of cash payments for selling and administrative expenses for April.
  6. Prepare the cash budget for April. Assume the company does not use short-term financing to maintain a minimum cash balance.
  7. Prepare the budgeted income statement for April.
  8. Prepare the budgeted balance sheet at April 30, 2018.
BELTON PRINTING COMPANY
Balance Sheet
March 31, 2018
Assets
Current Assets:
Cash
$ 51,100
Accounts Receivable
13,600
Merchandise Inventory
12,000
Total Current Assets
$ 76,700
Property, Plant, and Equipment:
Equipment and Fixtures
81, 100
Less: Accumulated Depreciation
(12,400)
68,700
Total Assets
$ 145,400
Liabilities
Current Liabilities:
Accounts Payable
$ 8,300
Stockholders' Equity
Common Stock, no par
S 35,000
Retained Earnings
102, 100
Total Stockholders' Equity
137,100
Total Liabilities and Stockholders' Equity
$ 145,400
Transcribed Image Text:BELTON PRINTING COMPANY Balance Sheet March 31, 2018 Assets Current Assets: Cash $ 51,100 Accounts Receivable 13,600 Merchandise Inventory 12,000 Total Current Assets $ 76,700 Property, Plant, and Equipment: Equipment and Fixtures 81, 100 Less: Accumulated Depreciation (12,400) 68,700 Total Assets $ 145,400 Liabilities Current Liabilities: Accounts Payable $ 8,300 Stockholders' Equity Common Stock, no par S 35,000 Retained Earnings 102, 100 Total Stockholders' Equity 137,100 Total Liabilities and Stockholders' Equity $ 145,400
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