Kraft is a Wholesale distributor of artisan cheese and ice cream. The following information is available for April 2017. The beginning cash balance is $400,000.

Required: Prepare the following for April 2017 Be sure to read the additional information below

a.Sales budget

b.Purchase Budget

c.Cash Budget

d. Budgeted Income Statement

Estimated Sales:

Cheese: 160,000 hoops at $10 each

Ice Cream: 240,000 gallons at $5 each

Estimated Costs: Cheese: $ 8.00 per hoop

Ice Cream: $2.00 per gallon

Desired Inventories: Beginning

Cheese:10,000

Ice Cream- 4,000

Ending Inventories

Cheese: 12,000

Ice Cream: 5,000

Additional info:

Beginning cash balance is $400,000.

Purchases of merchandise are paid 60% in the current month and 40% in the following month.

Purchases totaled $1,800,000 in March and are estimated to be $2,000,000 in May.

Employee wages and salaries are paid for in the current month.

Employee Expenses for April totaled $156,000.

Overhead expenses are paid in the next month.

The accounts payable amount for these expenses from March is $80,000 and for May will be $90,000.

Aprils overhead expenses total $80,000.

Sales are on credit and are collected 70% in the current period and the remainder in the next period.

Marchs sales were $3,000,000 and Mays sales are estimated to be $3,200,000.

Bad debts average 1% of sales. (Allowance for Bad Debts non-cash )

Selling and administrative expenses are paid monthly and total $450,000, including $40,000 of depreciation.

All unit costs for April are the same as they were in March.