Instrument Printing Supply

Balance Sheet

March $31,2024$

Assets

Current Assets:

Cash

$51,200$

Accounts Receivable

$14,200$

$12,600$

Merchandise Inventory

Total Current Assets

$78,000$

Property, Plant, and Equipment:

Equipment and Fixtures

$81,200$

Less: Accumulated Depreciation

$(12,000)$

$69,200$

Total Assets

$147,200$

Liabilities

Current Liabilities

Accounts Payable

$8,700$

Stockholders" Equity

Common Stock, no par

$45,000$

Retained Earnings

$93,500$

Total Stockholders' Equity

$138,500$

$

Total Liabilities and Stockholders' Equity

$147,200$Instrument 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:

$($Click the icon to view the balance sheet.$)$

As Instrument Printing Supply's controller, you have assembled the

following additional information:

$($i$)($Click the icon to view the information.$)$

Read the requirements.

Requirement $1.$ Prepare the sales budget for April.

Instrument Printing Supply

Sales Budget

For the Month Ended April $30,2024$

Total budgeted sales

$85,000$

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

Instrument Printing Supply

Inventory, Purchases, and Cost of Goods Sold Budget

For the Month Ended April $30,2024$

Cost of goods sold

$34000$

Plus: Desired ending merchandise inventory

Total merchandise inventory required

Less: Beginning merchandise inventory

Budgeted Purchases

Requirement $3.$ Prepare the selling and administrative expense budget for April.

Instrument Printing Supply

Selling and Administrative Expense Budget

For the Month Ended April $30,2024$

Variable expenses:

Fixed expenses:

Total fixed expenses

Total selling and administrative expenses

Requirement $4.$ Prepare the budgeted cash receipts from customers for April.

Instrument Printing Supply

Budgeted Cash Receipts from Customers

For the Month Ended April $30,2024$

Current month sales, $65\%$

Prior month sales, $35\%$

Total cash receipts$1.$ 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 bulget 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.

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 $30,2024.$a$.$April dividends of $$3,000$ were declared and paid

b$.$ April capital expenditures of $$16,600$ budgeted for cash purchase of equipment.

c$.$ April depreciation expense, $$300$

d$.$ Cost of goods sold, $40\%$ of sales. e$.$

Desired ending inventory for April is $$24,800$

f$.$ April selling and administrative expenses include salaries of $$34,000,20\%$ of which will be paid in cash and the remainder paid next month.

$9.$ Additional April selling and administrative expenses also include miscellaneous expenses of

$15\%$ of sales, all paid in April.

h$.$ April budgeted sales, $$86,000,$

$65\%$ collected in April and $35\%$ in May

$.$

April cash payments of March $31$ liabilities incurred for March purchases of inventory, $$8,700.$

j$-$

April purchases of inventory, $$8,800$ for cash and $$37,800$ on account. Half the credit purchases will be paid in April and half in May.