Master Budgets 1249 Learning Objectives 5, 6 ts. 579,200 P22-45A Completing a comprehensive budgeting problem--merchandising company Alliance Printing Supply of Baltimore has applied for a loan. Its bank has requested a budgeted income statement for April 2018 and a balance sheet at April 30, 2018. The March 31, 2018, balance sheet follows 6. Total cash p 7 NI $6,500 ALLIANCE PRINTING SUPPLY Balance Sheet March 31, 2018 5200 67 600 Assets Current Assets Cash 550,700 Accounts Receivable 15 500 Merchandise Inventory 12.000 Total Current Assets Property, Plant, and Equipment: Equipment and Fixtures 80.500 Less: Accumulated Depreciation (12.900) Total Assets Liabilities Current Liabilities Accounts Payable Stockholders' Equity Common Stock, no par $ 18.000 Retained Earnings 99 200 Total Stockholders' Equity Total Liabilities and Stockholders' Equity Y $ 145,800 $ 600 137 200 $ 145.800 As Alliance Printing Supply's controller, you have assembled the following additional information 1. April dividends of $7,000 were declared and paid. b. April capital expenditures of $16,300 budgeted for cash purchase of equipment. c. April depreciation expense, $1,000 d. Cost of goods sold, 40% of sales. e. Desired ending inventory for April is $22,400. 1 April selling and administrative expenses include salaries of $37.000, 30% of which will be paid in cash and the remainder paid next month. Additional April selling and administrative expenses also include miscellaneous expenses of 10% of sales, all paid in April. h. April budgeted sales, $89,000, 80% collected in April and 20% in Mag i. April cash payments of March 31 liabilities incurred for March purchases of inven- tory, 58,600. 1. April purchases of inventory, 58,600 for cash and $37,400 on account. Half the credit purchases will be paid in April and half in May. Requirements 1. Prepare the sales budget for April. 2. Prepare the inventory, purchases, and cost of goods sold budget for April. 3. Prepare the selling and administrative expense budget for April. 4. Prepare the schedule of cash receipts from customers for April. 5. Prepare the schedule of cash payments for selling and administrative expenses for April 6. Prepare the cash budget for April. Assume the company does not use short-term financing to maintain a minimum cash balance. 7. Prepare the budgeted income statement for April. 8. Prepare the budgeted balance sheet at April 30, 2018