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 statement of cash flows for April. The March 31, 2014, budgeted balance sheet follows:

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 sold, 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 40% 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.

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 forApril.

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CLASS PRINTING SUPPLY Balance Sheet March 31, 2014 Assets Current Assets Cash Accounts Receivable Merchandise Inventory Total Current Assets $ 50,500 12,800 11,900 75,200 Property, Plant, and Equipment: Equipment and fixtures Less: Accumulated Deprociation 81,100 (12,500) 68,600 143,800 Total Assets Liabilitles Current Uabilities: Accounts Payable 8,600 Stockholders Equity Common Stock 42,000 93,200 Retained Earnings Total Stockholders Equity Total Liabilities and Stockholders Equity 135,200 $ 143,800