Note Printing of Baltimore has applied for a loan. Bank of America has requested a budgeted balance sheet at April 30, 2011, and a budgeted statement of cash flows for April. As Note Printing’s controller, you have assembled the following information:

a. March 31 equipment balance, \($80,500;\) accumulated depreciation, \($12,100\)

b. April capital expenditures of \($16,500\), budgeted for cash purchase of equipment

c. April depreciation expense, \($600\)

d. Cost of goods sold, 55% of sales

e. Other April operating expenses, including income tax, total \($35,000\), 40% of which will be paid in cash and the remainder accrued at the end of April

f. March 31 stockholders’ equity, \($138,600\)

g. March 31 cash balance, \($50,900\)

h. April budgeted sales, \($89,000\), 60% of which is for cash; of the remaining 40%, half will be collected in April and half in May

i. April cash collections on March sales, \($15,300\)

j. April cash payments of March 31 liabilities incurred for March purchases of inventory, \($7,900\)

k. March 31 inventory balance, \($11,900\)

l. April purchases of inventory, \($10,700\) for cash and \($37,000\) on credit. Half the credit purchases will be paid in April and half in May.

Requirements 

1. Prepare the budgeted balance sheet for Note Printing at April 30, 2011. Show separate computations for cash, inventory, and stockholders’ equity balances.

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

3. Suppose that Note Printing has become aware of more efficient (and more expensive) equipment than it budgeted for purchase in April. What is the total amount of cash available for equipment purchases in April, before financing, if the minimum desired ending cash balance is \($12,000\)? (For this requirement, disregard the \($16,500\) initially budgeted for equipment purchases.)