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

1. Sales budget

2. Purchase Budget

3. Cash Budget

4. Budgeted Income Statement.

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.

Estimated Sales Cheese 160,000 hoops at $10 each 240,000 gallons at $5 each Ice Cream Estimated Costs Cheese 8.00 per hoop 2.00 per gallon Ice Cream |Beginning Ending 12,000 Desired inventories Cheese 10,000 4,000 5,000 Ice Cream Additional info: Kraft Sales Budget For the Month of April Units Sales Price Cheese Ice Cream Total Kraft Purchase Budget For the Month of April Ice Cream Cheese Total Units Sales needs Desired ending inventory Total Less: Beginning inventory Purchases Dollars Sales needs Desired ending inventory Total Less: Beginning inventory Purchases needed