Additional information pertaining to April operations:

Proposed capital expenditure of $42,000. The vendor requires cash payment on delivery of this equipment. Aprils depreciation expense is $900 (this includes the additional depreciation connected to the purchase of the new purchase). April sales are expected to be $84,000, 60% of which are cash sales. The pattern of collection for the credit sales is half in the month of sale and half in the following month. April purchases of inventory: $10,300 for cash and $36,300 on credit. The pattern of payment of the credit purchases of inventory is half in the month of purchase and the other half in the following month. Cost of goods sold is estimated to be 65% of sales. Other operating expenses, including income tax, total $14,000. The pattern for payment of these types of expenditures is 20% is paid in the month of purchase and the remainder is paid in the month following the purchase.

Required: (Use the ANSWER booklet to record your responses)

Prepare a combined cash budget for April (11 marks) Calculate the ending balance that would appear on the April 30 balance sheet for accounts receivable. (1 mark) Prepare an income statement in good form (3 marks)

The following information has been collected for Glenco Ltd at March 31. Balance Sheet March 31 Assets Cash Accounts receivable Inventory Property. Plant and Equipment (net) $40,100 16.000 29.100 10.900 $96.100 Total Assets $26.500 26.500 Liabilities Accounts payable Total liabilities Shareholders' Equity Common shares Retained earnings Total shareholders equity Total Liabilities and Shareholders Equity 50.000 19.600 69.600 $96.100