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Class Printing Supply_ Budgets




Question;Class Printing Supply of Baltimore has applied for a;loan. Its bank has requested a budgeted balance sheet at April 30, 2014, and a;budgeted stated of cash flows for April. The March 31, 2014, budgeted balance;sheet follows;CLASS;PRINTING SUPPLY;Balance;Sheet;March;31, 2014;Assets;Current Assets;Cash $ 50,500;Accounts Receivable 12,800;Merchandise Inventory 11,900;Total Current Assets $;75,200;Property, Plant, and Equipment;Equipment and Fixtures 81,100;Less: Accumulated Depreciation (12,500) 68,600;Total Assets $;143,600;Liabilities;Current Liabilities;Accounts Payable $;8,600;Stockholders? Equity;Common Stock $ 42,000;Retained Earnings 93,200;Total Stockholders? Equity 135,200;Total Liabilities and Stockholders?;Equity;$ 143,800;As Class Printing?s controller, you have assembled the;following additional information;a.;April dividends of $2,500 were;declared and paid.;b. April capital expenditures of $16,400 budgeted for cash purchase of;equipment.;c. April depreciation expense, $700.;d. Cost of goods cold, 40% of sales.;e. Desired ending inventory for April is $24,700.;f. April selling and administrative expenses include salaries of;$38,000, 20% 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 5% of sales, all paid in April.;h. April budgeted sales, $89,000, 60% collected in April and 4-% in;May.;i. April cash payments of March 31 liabilities incurred for March;purchases of inventory, $8,600.;j.;April purchases of inventory;$10,900 for cash and $37,500 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 budgeted cash receipts from customers for April.;5. Prepare the budgeted 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.


Paper#39698 | Written in 18-Jul-2015

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