![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Printing Supply of Baltimore has applied for a loan. Its bank has requested a budgeted income statement for
April
2024
and budgeted
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
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.](https://content.bartleby.com/qna-images/question/0fb26cb0-0bf4-4866-a89c-8bb937264b2a/eda62507-19af-4e20-8bde-3541ca9bbe95/8vfsyow_thumbnail.png)
Transcribed Image Text:**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.](https://content.bartleby.com/qna-images/question/0fb26cb0-0bf4-4866-a89c-8bb937264b2a/eda62507-19af-4e20-8bde-3541ca9bbe95/2yxbt34_thumbnail.png)
Transcribed Image Text:**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.
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