Key Medical Supply has applied for a loan. City's First Bank has requested a budgeted balance sheet as of April 30, and a combined cash budget for April. As Key Medical Supply's controller, you have assembled the following information (Click the icon to view the information) Read the requirements Requirement 1. Show separate computations for cash, inventory, and owners' equity balances. Begin by calculating the cash balance Beginning balance Cash inflows Cash sales Cash Data table a. March 31 equipment balance, $52,800, accumulated depreciation, $41,200. Collections Cash outflows Payment of March liables Cash purchases Payments for April (credit) purchases) Purchase of equipment Operating expenses Ending balance b. April capital expenditures of $42,300 budgeted for cash purchase of equipment. e. April depreciation expense, $200. d. Cost of goods sold, 55% of sales Other April operating expenses, including income tax, total $13.000, 25% of which will be paid in cash and the remainder accrued at April 30 f. March 31 owners' equity 593,400 9. March 31 cash balance, $40,400 h. April budgeted sales, $84,000, 60% of which is for cash Of the remaining 40%, half will be collected in April and half in May L April cash collections on March sales, $29,700 April cash payments of March 31 sabilities incurred for March purchases of inventory, $17,300 k. March 31 inventory balance, $29,000 1. April purchases of inventory, $10,900 for cash and $36,500 on credit. Half of the credit purchases will be paid in April and half in May Print Done wer K Key Medical Supply has applied for a loan. City's First Bank has requested a budgeted balance sheet as of April 30, and a combined cash budget for April. As Key Medical Supply's controller, you have assembled the following information (Click the icon to view the information) Read the requirements Requirement 1. Show separate computations for cash, inventory, and owners' equity balances. Begin by calculating the cash balance Beginning balance Cash Requirements Cash inflows Cash sales Collections Cash outflows Payment of March abilities Cash purchases Payments for April (credit) purchases Purchase of equipment Operating expenses Ending balance 1. Prepare the budgeted balance sheet for Key Medical Supply at April 30. Show separate computations for cash, inventory, and owners' equity balances. 2. Prepare the combined cash budget for April. 3. Suppose Key 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 $18,000? (For this requirement, disregard the $42,300 initially budgeted for equipment purchases.) 4. Before granting a loan to Key Medical Supply, City's First Bank asks for a sensitivity analysis assuming that April sales are only $56,000 rather than the $84,000 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 th in the earlier requirements) a. Prepare a revised budgeted balance sheet for Key Medical Supply, showing separate computations for cash, inventory, and owners' equity balances b. Suppose Key Medical Supply has a minimum desired cash balance of $18,000. Wis the company need to borrow cash in April? Video Get more help. Print Done X answer