Printing Supply of Baltimore has applied for a loan. Its bank has requested a budgeted income statement for April 2024 and budgeted balance sheet at April 30, 2024. The March 31, 2024, balance sheet follows: As Tune Printing Supply's controller, you have assembled the following additional information: a. April dividends of $6,000 were declared and paid. b. April capital expenditures of $16,200 budgeted for cash purchase of equipment. c. April depreciation expense, $500. d. Cost of goods sold, 45% of sales. e. Desired ending inventory for April is $22,800. f. April selling and administrative expenses include salaries of $32,000, 30% of which will be paid in cash and the remainder paid next month. g. Additional April selling and administrative expenses also include miscellaneous expenses of 15% of sales, all paid in April. h. April budgeted sales, $86,000, 50% collected in April and 50% in May. i. April cash payments of March 31 liabilities incurred for March purchases of inventory, $8,100. j. April purchases of inventory, $12,300 for cash and $37,500 on account. Half the credit purchases will be paid in April and half in May. I'VE ASKED THIS QUESTION A FEW TIMES BUT ONLY GET PART ANSWERS. CAN YOU PLEASE HELP ME WITH REST OF PART 8? 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, 2024.

Budgeting - Budgeting is the process of estimating future operations based on past performance. % are estimated and collections are estimated based on past performance. Budgeting helps to control the operations from getting excess over its budgeted figures1. Sale Budget - 2. Inventory, Purchases, and Cost of Goods Sold Budget - 3. Selling and Administrative Expense Budget - 4. Cash Receipt from Customers - 5. Cash Payments for selling and administrative Expense - 6. Cash Budget - 7. Income Statement - 8. Balance Sheet -

Answered: Printing Supply of Baltimore has applied for a loan. Its bank has requested a budgeted income statement for April 2024 and budgeted balance sheet at April 30,…

FINANCIAL ACCOUNTING

10th Edition

ISBN: 9781259964947

Author: Libby

Publisher: MCG

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Concept explainers

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.

Question

Printing Supply of Baltimore has applied for a loan. Its bank has requested a budgeted income statement for

April

2024

and budgeted balance sheet at

April

30,

2024.

The

March

31,

2024,

balance sheet follows:

Tune

Printing Supply's controller, you have assembled the following additional information:

a.	April dividends of $6,000 were declared and paid.
b.	April capital expenditures of $16,200 budgeted for cash purchase of equipment.
c.	April depreciation expense, $500.
d.	Cost of goods sold, 45% of sales.
e.	Desired ending inventory for April is $22,800.
f.	April selling and administrative expenses include salaries of $32,000, 30% of which will be paid in cash and the remainder paid next month.
g.	Additional April selling and administrative expenses also include miscellaneous expenses of 15% of sales, all paid in April.
h.	April budgeted sales, $86,000, 50% collected in April and 50% in May.
i.	April cash payments of March 31 liabilities incurred for March purchases of inventory, $8,100.
j.	April purchases of inventory, $12,300 for cash and $37,500 on account. Half the credit purchases will be paid in April and half in May.

I'VE ASKED THIS QUESTION A FEW TIMES BUT ONLY GET PART ANSWERS. CAN YOU PLEASE HELP ME WITH REST OF PART 8?

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, 2024.

**Tune Printing Supply: Budgeted Balance Sheet**

**Date:** April 30, 2024

---

### Assets

**Current Assets:**
- **Cash:** $24,350
- **Accounts Receivable:** $43,000
- **Merchandise Inventory:** $22,800

**Total Current Assets:** $90,150

**Property, Plant, and Equipment:**
- **Equipment and Fixtures:** $97,100
- **Less: Accumulated Depreciation:** $(12,600)

**Net Property, Plant, and Equipment:** $84,500

**Total Assets:** $174,650

---

### Liabilities

**Current Liabilities:**
- **Accounts Payable:** $18,600
- **Salaries Payable:** $22,400

**Total Liabilities:** $41,000

---

### Stockholders' Equity

- **Common Stock:** $40,000
- **Retained Earnings:** $93,500

**Total Stockholders' Equity:** $133,500

**Total Liabilities and Stockholders' Equity:** $174,500

This balance sheet provides a snapshot of Tune Printing Supply's financial position as of April 30, 2024. It details the company's assets, liabilities, and stockholders' equity, emphasizing the balanced nature of financial statements where total assets equal the sum of liabilities and equity.

**Cash Budget**

**For the Month Ended April 30, 2024**

- **Beginning cash balance:** $51,000
- **Cash receipts from customers:** $57,200

**Cash available:** $108,200

**Cash payments:**
- Purchases of merchandise inventory: $39,150
- Selling and administrative expenses: $22,500
- Capital expenditures: $16,200
- Payments for dividend: $6,000

**Total cash payments:** $83,850

**Ending cash balance:** $24,350

**Explanation:**

The cash budget details the financial transactions expected within a specific timeframe, here for the month ending April 30, 2024. The beginning cash balance is the initial funds available at the start of the period, followed by cash inflows, such as customer receipts, resulting in total cash available. Cash outflows include various payments, leading to the total cash payments. The ending cash balance reflects the remaining funds after considering all inflows and outflows.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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