Professional Printing Supply of Baltimore has applied for a loan. Its bank has requested a budgeted balance sheet at April 30, 2016, and a budgeted statement of cash flows for April. The March 31, 2016, balance sheet follows:

As Professional Printing Supply€™s controller, you have assembled the following additional information:
a. April dividends of $4,000 were declared and paid.
b. April capital expenditures of $16,600 budgeted for cash purchase of equipment.
c. April depreciation expense, $600.
d. Cost of goods sold, 40% of sales.
e. Desired ending inventory for April is $23,600.
f. April selling and administrative expenses include salaries of $36,000, 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 15% of sales, all paid in April.
h. April budgeted sales, $84,000, 70% collected in April and 30% in May.
i. April cash payments of March 31 liabilities incurred for March purchases of inventory, $7,900.
j. April purchases of inventory, $7,900 for cash and $37,100 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 schedule of cash receipts from customers for April.
5. Prepare the schedule of 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, 2016.
9. Prepare the budgeted statement of cash flows for April.

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PROFESSIONAL PRINTING SUPPLY Balance Sheet March 31, 2016 Assets Current Assets: Cash Accounts Receivable Merchandise inventory Total Current Assets $ 51,000 14,200 12,200 77,400 Property, Plant, and Equipment: Equipment and Fixtures Less: Accumulated Depreciation 80,400 (12,300) 68,100 145,500 Total Assets Liabilities Current Liabilities: Accounts Payable 7,900 Stockholders' Equity Common Stock, no par Retained Earnings 30,000 107,600 Total Stockholders' Equity Total Liabilities and Stockholders Equity 137,600 145,500