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I have included the requirements, data table, and question in the 3 screenshots attached. This is all the information there is for this question. Sheet
I have included the requirements, data table, and question in the 3 screenshots attached.
This is all the information there is for this question.
Sheet Printing of MiSSissauga has applied fora loan. Scotiabank has requested a budgeted balance sheet as of April 30 and a combined cash budget torApril. As Sheet Printing's controller, you have assembled the followmg Information: g (Click the icon to view the information.) Lmiuirements Requirement 1. Prepare the budgeted balance sheet for Sheet Printing at April 30 Show separate computations for cash: inventory. and owners' eqUIty balances. Begin by calculating the cash balance Cash 6 Beginning balance Cash inflows: Cash sales Collections Cash outflows Payment of March liabilities Cash purchases Payments torApril (credit) purchases Purchase of eqUIpment Operating expenses Ending balance Data table March 31 equipment balance, $52,300; accumulated depreciation. $41,900 . April capital expenditures of 542,500 budgeted for cash purchase of equipment qui April depreciation expense, $400 . Cost of goods sold, 45% of sales OtherApril operating expenses, including income tax, total $13,000, 35% of which will be paid in cash and the remainder accrued at April 30 March 31 owners' equity, $92,500 . March 31 cash balance, $40,300 . April budgeted sales, 588,000, T0% of which is for cash. Of the remaining 30%, half will be collected in April and half in May April cash collections on March sales, $29,000 April cash payments of March 31 liabilities incurred for March purchases of inventory, $11100 March 31 inventory balance. $29,900 April purchases of inventory, 310,800 for cash and $36,800 on credit. Half of the credit purchases will be paid in April and half in May -@ Requirements 1. Prepare the budgeted balance sheet for Sheet Printing at April 30. Show separate computations for cash, inventory, and owners' equity balances. . Prepare the combined cash budget torApril. . Suppose Sheet Printing has become aware of more efficient (and more expensive) equipment than it budgeted for purchase in April. 1|.i'v'hat is the total amount of cash available for equipment purchases in April, before financing, ifthe minimum desired ending cash balance is $16,000? [For this requirement, disregard the $42,500 initially budgeted for equipment purchases.) . Before granting a loan to Sheet Printing, Scotiabank asks for a sensitivity analysis assuming that April sales are only $58136? rather than the 588,000 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 Sheet Printing, showing separate computations for cash, inventory, and owners' equity balances. b. Suppose Sheet Printing has a minimum desired cash balance of $21 .000. Will the company need to borrovlr cash in April? . In this sensitivity analysis, sales declined by 33 \"3% {$29,333 $88,000). Is the decline in expenses and income more or less than 33 \"3%? Explain. .@Step by Step Solution
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