Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
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 SR200 67 600 Assets Current Assets Carch 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 $ 8600 137,200 5 145.800 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. 101 April 6. Prepare the cash budget for April. Assume the company does not use short-term financing to maintain a minimum cash balance

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

RP-5 What are five proposed reasons for our need for sleep?

Answered: 1 week ago