Tune 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. Requirement 1. Prepare the sales budget for April. Sales Budget For the Month Ended April 30, 2024 Total budgeted sales $86,000 Requirement 2. Prepare the inventory, purchases, and cost of goods sold budget for April. Inventory, Purchases, and Cost of Goods Sold Budget For the Month Ended April 30, 2024 Cost of goods sold $38,700 Plus: Desired ending merchandise inventory 22,800 Total merchandise inventory required 61,500 Less: Beginning merchandise inventory 11,700 Budgeted Purchases $49,800 Requirement 3. Prepare the selling and administrative expense budget for April. Selling and Administrative Expense Budget For the Month Ended April 30, 2024 Variable expenses: Miscellaneous expense $12,900 Fixed expenses: Salaries expense 32,000 Depreciation expense 500 Total fixed expenses 32,500 Total selling and administrative expenses $45,400 Requirement 4. Prepare the budgeted cash receipts from customers for April. Budgeted Cash Receipts from Customers For the Month Ended April 30, 2024 Current month sales, 50% $43,000 Prior month sales, 50% 14,200 Total cash receipts $57,200 Requirement 5. Prepare the budgeted cash payments for selling and administrative expenses for April. Variable expenses: Miscellaneous expenses $12,900 Fixed expenses: 30% of current month's salaries expense 9,600 Total payments for selling and administrative expenses $22,500 Requirement 6. Prepare the cash budget for April. Assume the company does not use short-term financing to maintain a minimum cash balance. Tune Printing Supply Budgeted Cash Payments for selling and Amin Expenses For the Month Ended April 30, 2024 Beginning cash balance Cash receipts from customers 57,200 Cash available Cash payments: Purchases of merchandise inventory Selling and administrative expenses Capital expenditures 16,200 Payments for dividend 6,000 Total cash payments Ending cash balance Please help solve requirements 6, 7, 8, 9

Tune 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. Requirement 1. Prepare the sales budget for April. Sales Budget For the Month Ended April 30, 2024 Total budgeted sales $86,000 Requirement 2. Prepare the inventory, purchases, and cost of goods sold budget for April. Inventory, Purchases, and Cost of Goods Sold Budget For the Month Ended April 30, 2024 Cost of goods sold $38,700 Plus: Desired ending merchandise inventory 22,800 Total merchandise inventory required 61,500 Less: Beginning merchandise inventory 11,700 Budgeted Purchases $49,800 Requirement 3. Prepare the selling and administrative expense budget for April. Selling and Administrative Expense Budget For the Month Ended April 30, 2024 Variable expenses: Miscellaneous expense $12,900 Fixed expenses: Salaries expense 32,000 Depreciation expense 500 Total fixed expenses 32,500 Total selling and administrative expenses $45,400 Requirement 4. Prepare the budgeted cash receipts from customers for April. Budgeted Cash Receipts from Customers For the Month Ended April 30, 2024 Current month sales, 50% $43,000 Prior month sales, 50% 14,200 Total cash receipts $57,200 Requirement 5. Prepare the budgeted cash payments for selling and administrative expenses for April. Variable expenses: Miscellaneous expenses $12,900 Fixed expenses: 30% of current month's salaries expense 9,600 Total payments for selling and administrative expenses $22,500 Requirement 6. Prepare the cash budget for April. Assume the company does not use short-term financing to maintain a minimum cash balance. Tune Printing Supply Budgeted Cash Payments for selling and Amin Expenses For the Month Ended April 30, 2024 Beginning cash balance Cash receipts from customers 57,200 Cash available Cash payments: Purchases of merchandise inventory Selling and administrative expenses Capital expenditures 16,200 Payments for dividend 6,000 Total cash payments Ending cash balance Please help solve requirements 6, 7, 8, 9

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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.

Requirement 1. Prepare the sales budget for

April.


Sales Budget
For the Month Ended April 30, 2024
	Total budgeted sales	$86,000

Requirement 2. Prepare the inventory, purchases, and cost of goods sold budget for

April.


Inventory, Purchases, and Cost of Goods Sold Budget
For the Month Ended April 30, 2024
Cost of goods sold	$38,700
Plus:	Desired ending merchandise inventory	22,800
Total merchandise inventory required	61,500
Less:	Beginning merchandise inventory	11,700
Budgeted Purchases	$49,800

Requirement 3. Prepare the selling and administrative expense budget for

April.


Selling and Administrative Expense Budget
For the Month Ended April 30, 2024
	Variable expenses:
	Miscellaneous expense	$12,900
	Fixed expenses:
	Salaries expense	32,000
	Depreciation expense	500
	Total fixed expenses	32,500
	Total selling and administrative expenses	$45,400

Requirement 4. Prepare the budgeted cash receipts from customers for

April.

Budgeted Cash Receipts from Customers

For the Month Ended April 30, 2024

Current month sales, 50%	$43,000
Prior month sales, 50%	14,200
Total cash receipts	$57,200

Requirement 5. Prepare the budgeted cash payments for selling and administrative expenses for

April.




Variable expenses:
Miscellaneous expenses	$12,900
Fixed expenses:
30% of current month's salaries expense	9,600
Total payments for selling and administrative expenses	$22,500

Requirement 6. Prepare the cash budget for

April.

Assume the company does not use short-term financing to maintain a minimum cash balance.

Tune Printing Supply

Budgeted Cash Payments for selling and Amin Expenses

For the Month Ended April 30, 2024

Beginning cash balance
Cash receipts from customers	57,200
Cash available
Cash payments:
Purchases of merchandise inventory
Selling and administrative expenses
Capital expenditures	16,200
Payments for dividend	6,000
Total cash payments
Ending cash balance

Please help solve requirements 6, 7, 8, 9

Assets
Current Assets:
Cash
51,000
Accounts Receivable
14,200
11,700
Merchandise Inventory
Total Current Assets
$
76,900
Property, Plant, and Equipment:
Equipment and Fixtures
90
(12,100)
68,800
Less: Accumulated Depreciation
$
145,700
Total Assets
Liabilities
Current Liabilities:
Accounts Payable
$
8,100
Stockholders' Equity
Common Stock, no par
$
40,000
Retained Earnings
97,600
Total Stockholders' Equity
137,600
$
145,700
Total Liabilities and Stockholders' Equity

Definition Definition Estimate of an organization's cash flow for a future period. A cash budget forecasts future cash receipts and payments from various sources for a fiscal year. A cash budget can be created once a month or once a week to determine the organization's cash position and ensure its performance in relation to the budget. It aids in determining whether the company has enough cash and cash equivalents to meet its operational needs in the future.

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