Box Printing Supply of Baltimore has applied for a loan. Its bank has requested a budgeted income statement for April 2018 and budgeted balance sheet at April 30, 2018. The March 31, 2018, balance sheet follows: : (Click the icon to view the balance sheet.) As Box Printing Supply's controller, you have assembled the following additional information: (Click the icon to view the information.) Read the requirements Requirement 1. Prepare the sales budget for April. Box Printing Supply Sales Budget For the Month Ended April 30, 2018 Total budgeted sales Requirement 2. Prepare the inventory, purchases, and cost of goods sold budget for April. Box Printing Supply Inventory, Purchases, and Cost of Goods Sold Budget For the Month Ended April 30, 2018 Cost of goods sold Plus: Desired ending merchandise inventory Total merchandise inventory required Less Beginning merchandise inventory Budgeted Purchases Box Printing Supply Balance Sheet March 31, 2018 Assets Current Assets Cash Accounts Receivable 50,800 14,400 12, 100 $ 77,300 80,700 (12,600) 68,100 $ 145,400 Merchandise Inventory Total Current Assets Property, Plant, and Equipment: Equipment and Fixtures Less: Accumulated Depreciation Total Assets Liabilities Current Liabilities: Accounts Payable Stockholders' Equity Common Stock, no par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity $ 8,400 $ 55,000 82,000 137,000 145,400 a. April dividends of $3,500 were declared and paid. b. April capital expenditures of $16,900 budgeted for cash purchase of equipment. c. April depreciation expense, $900. d. Cost of goods sold, 50% of sales. e. Desired ending inventory for April is $22,800. f. April selling and administrative expenses include salaries of $33,000, 30% 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 10% of sales, all paid in April. h. April budgeted sales, $91,000, 60% collected in April and 40% in May. i. April cash payments of March 31 liabilities incurred for March purchases of inventory, $8,400. j. April purchases of inventory, $18,600 for cash and $37,600 on account. Half the credit purchases will be paid in April and half in May. Requirement 3. Prepare the selling and administrative expense budget for April. Box Printing Supply Selling and Administrative Expense Budget For the Month Ended April 30, 2018 Variable expenses: Miscellaneous expense Fixed expenses: Salaries expense Depreciation expense Total fixed expenses Total selling and administrative expenses Requirement 4. Prepare the budgeted cash receipts from customers for April. Box Printing Supply Budgeted Cash Receipts from Customers For the Month Ended April 30, 2018 Current month sales, 60% Prior month sales, 40% Total cash receipts Requirement 5. Prepare the budgeted cash payments for selling and administrative expenses for April. Box Printing Supply Budgeted Cash Payments for Selling and Administrative Expenses For the Month Ended April 30, 2018 Variable expenses: Miscellaneous expenses Fixed expenses: 30% of current month's salaries expense Total payments for selling and administrative expenses III Requirement 6. Prepare the cash budget for April. Assume the company does not use short-term financing to maintain a minimum cash balance. Review the budgeted cash receipts from customers you prepared above. Review the budgeted cash payments for selling and administrative expenses you prepared above. Box Printing Supply Cash Budget For the Month Ended April 30, 2018 Beginning cash balance Cash receipts from customers Cash available Cash payments: Purchases of merchandise inventory Selling and administrative expenses Capital expenditures Payments for dividend Total cash payments Ending cash balance Requirement 7. Prepare the budgeted income statement for April. Review the sales budget you prepared above. Review the selling and administrative expense budget you prepared above. Review the inventory, purchases, and cost of goods sold budget you prepared above. Box Printing Supply Budgeted Income Statement For the Month Ended April 30, 2018 Sales Revenue Cost of Goods Sold Gross Profit Selling and Administrative Expenses: Miscellaneous Expense Salaries Expense Depreciation Expense Total Selling and Administrative Expenses Net income (loss) Review the cash budget you prepared above. Box Printing Supply Budgeted Balance Sheet April 30, 2018 Assets Current Assets: Cash Accounts Receivable Merchandise Inventory Total Current Assets Property, Plant, and Equipment: Equipment and Fixtures Less: Accumulated Depreciation Total Assets Liabilities Current Liabilities: Accounts Payable Salaries Payable Total Liabilities Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity