Alliance Printing of Baltimore has applied for a loan. Their bank has requested a budgeted balance sheet at April 30, 2014, and a budgeted statement of cash flows for April. The March 31, 2014, budgeted balance sheet follows:

As Alliance Printing’s controller, you have assembled the following additional information:

a. April dividends of $ 8,000 were declared and paid.

b. April capital expenditures of $ 16,700 budgeted for cash purchase of equipment.

c. April depreciation expense, $ 400. d. Cost of goods sold, 30% of sales.

e. Desired ending inventory for April is $ 35,100.

f. April selling and administrative expenses includes salaries of $ 35,000, 40% 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, $ 85,000, 60% collected in April and 40% in May.

i. April cash payments of March 31 liabilities incurred for March purchases of inventory, $ 7,800.

j. April purchases of inventory, $ 11,200 for cash and $ 37,300 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.

7. Prepare the budgeted income statement for April.

8. Prepare the budgeted balance sheet at April 30, 2014.

9. Prepare the budgeted statement of cash flows for April.

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ALLIANCE PRINTING Balance Sheet March 31, 2014 Assets Current Assets: Cash $ 51,100 Accounts Receivable 14,900 Merchandise Inventory 12,100 Total Current Assets $ 78,100 Property, Flant, and Equipment: Equipment and Fxtures 80,800 Less: Accumulated Depreciation (12,300) 68,500 Total Assets $ 146,600 Liabilities Current Liabilities: Accounts Payable $ 7,800 Stockholders' Equity Common Stock $ 36,000 Retained Earnings 102,800 Total Stockholders' Equity 138,800 Total Liabilities and Stockholders' Equity $ 146,600