a. March 31 equipment balance, $52,100; accumulated depreciation, $41,400. b. April capital expenditures of $42,400 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 $13,000, 20% of which will be paid in cash and the remainder accrued at April 30. f. March 31 owners' equity, $91,500. g. March 31 cash balance, $40,100. h. April budgeted sales, $87,000, 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, $29,300. j. April cash payments of March 31 liabilities incurred for March purchases of inventory, $17,800. k. March 31 inventory balance, $29,200. I. April purchases of inventory, $10,500 for cash and $36,300 on credit. Half of the credit purchases will be paid in April and half in May. 4. Before granting a loan to Alliance Medical Supply, First National Bank asks for a sensitivity analysis assuming that April sales are only $58,000 rather than the $87,000 originally budgeted. (While the cost of goods sold will change, assume that purchases, depreciation, and the other operating expenses will remain the same as in the earlier requirements.) a. Prepare a revised budgeted balance sheet for Alliance Medical Supply, showing separate computations for cash, inventory, and owners' equity balances. b. Suppose Alliance Medical Supply has a minimum desired cash balance of $15,000. Will the company need to borrow cash in April? 40,100 Beginning balance Cash inflows: 34,800 Cash sales Collections 46,700 Cash outflows: Payment of May liabilities Cash purchases Payments for April (credit) purchases Purchase of equipment Operating expenses paid a. March 31 equipment balance, $52,100; accumulated depreciation, $41,400. b. April capital expenditures of $42,400 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 $13,000, 20% of which will be paid in cash and the remainder accrued at April 30. f. March 31 owners' equity, $91,500. g. March 31 cash balance, $40,100. h. April budgeted sales, $87,000, 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, $29,300. j. April cash payments of March 31 liabilities incurred for March purchases of inventory, $17,800. k. March 31 inventory balance, $29,200. I. April purchases of inventory, $10,500 for cash and $36,300 on credit. Half of the credit purchases will be paid in April and half in May. 4. Before granting a loan to Alliance Medical Supply, First National Bank asks for a sensitivity analysis assuming that April sales are only $58,000 rather than the $87,000 originally budgeted. (While the cost of goods sold will change, assume that purchases, depreciation, and the other operating expenses will remain the same as in the earlier requirements.) a. Prepare a revised budgeted balance sheet for Alliance Medical Supply, showing separate computations for cash, inventory, and owners' equity balances. b. Suppose Alliance Medical Supply has a minimum desired cash balance of $15,000. Will the company need to borrow cash in April? 40,100 Beginning balance Cash inflows: 34,800 Cash sales Collections 46,700 Cash outflows: Payment of May liabilities Cash purchases Payments for April (credit) purchases Purchase of equipment Operating expenses paid