Data table

a$.$ March $31$ equipment balance, $$52,600$; accumulated depreciation, $$41,500.$

b$.$ April capital expenditures of $$42,600$ budgeted for cash purchase of equipment.

c$.$ April depreciation expense, $$700.$

d$.$ Cost of goods sold, $45\%$ of sales.

e$.$ Other April operating expenses, including income tax, total Box Medical Supply has applied for a loan. First National Bank has requested a budgeted balance sheet as of April$30,$ and a combined cash budget for April. As Box Medical$$ Supply's controller, you have assembled the following$$ information:

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Question content area bottom

Part $1$

Requirement $1.$ Show separate computations for$$ cash, inventory, and$$ owners' equity balances. Begin by calculating the cash balance.

Cash

Beginning balance

$40700$

Cash inflows:

Cash sales

$67500$

Collections

Cash outflows:

Payment of March liabilities

Cash purchases

Payments for April $($credit$)$ purchases

Purchase of equipment

Operating expenses

Ending balance

Part $2$

Calculate the inventory balance.

Inventory

Beginning balance

Add:

Purchases

Less:

Cost of goods sold

Ending balance

Part $3$

Calculate the$$ owners' equity balance.

Owners' Equity

Beginning balance

Add:

Revenues

Less:

Expenses

Ending balance

Part $4$

Prepare the budgeted balance sheet for Box Medical Supply at April $30.$

Box Medical Supply

Budgeted Balance Sheet

April $30$

Part $5$

Assets

Current assets:

Cash

Accounts receivable

Inventory

Total current assets

Plant assets:

Equipment

Accumulated depreciation

Total assets

Liabilities

Current liabilities:

Accounts payable

Accrued expenses payable

Total liabilities

Owners' Equity

Owners' equity

Total liabilities and owners' equity

Part $6$

Requirement $2.$ Prepare the combined cash budget for April.

Box Medical Supply

Combined Cash Budget

For the Month Ended April $30$

Beginning cash balance, April $1$

Plus: Cash collections from customers

Total cash available

Less cash payments:

Purchases

Operating expenses

Acquisition of equipment

Ending cash balance, April $30$

Part $7$

Requirement $3.$ Suppose Box Medical Supply 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$$ financing, if the minimum desired ending cash balance is $ $15$ comma $000?($For this$$ requirement, disregard the $ $42$ comma $600$ initially budgeted for equipment$$ purchases.$)$

The amount of cash available for equipment purchases in April, before financing, if the minimum desired ending cash

balance is $$15,000($and disregarding the $$42,600$ initially budgeted for equipment purchases$)$ is

$.$

Part $8$

Requirement $4.$ Before granting a loan to Box Medical$$ Supply, First National Bank asks for a sensitivity analysis assuming that April sales are only $ $60$ comma $000$ rather than the $ $90$ comma $000$ originally budgeted.$($While the cost of goods sold will$$ 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 Box Medical$$ Supply, showing separate computations for$$ cash, inventory, and$$ owners' equity balances. Begin by calculating the cash balance. $($Round amounts to the nearest whole$$ dollar.$)$

Cash

Beginning balance

Cash inflows:

Cash sales

Collections

Cash outflows:

Payment of May liabilities

Cash purchases

Payments for April $($credit$)$ purchases

Purchase of equipment

Operating expenses paid

Ending balance

Part $9$

Calculate the inventory balance. $($Round amounts to the nearest whole$$ dollar.$)$

Inventory

Beginning balance

Add:

Purchases

Less:

Cost of goods sold

Ending balance

Part $10$

Calculate the$$ owners' equity balance. $($Round amounts to the nearest whole$$ dollar.$)$

Owners' Equity

Beginning balance

Add:

Revenues

Less:

Expenses

Ending balance

Part $11$

Prepare the budgeted balance sheet for Box Medical Supply at April $30.$

Box Medical Supply

Budgeted Balance Sheet

April $30$

Part $12$

Assets

Current assets:

Cash

Accounts receivable

Inventory

Total current assets

Plant assets:

Equipment

Accumulated depreciation

Total assets

Liabilities

Current liabilities:

Accounts payable

Accrued expenses payable

Total liabilities

Owners' Equity

Owners' equity

Total liabilities and owners' equity

Part $13$

b$.$ Suppose Box Medical Supply has a minimum desired cash balance of $ $22$ comma $000.$ Will the company need to borrow cash in$$ April?

The company

have to borrow cash in April if sales revenue is $$60,000.$ The company's cash balance is

than the minimum balance of $$22,000.$