Requirement 1. Prepare the budgeted balance sheet for Intelligent Printing at April 30. Show separate computations for cash, inventory, and owners' equity balances Begin by calculating the cash balance. Cash Beginning balance $ 40,900 Cash inflows: Cash sales 62,300 Collections 42,950 Cash outflows: Payment of March liabilities (17, 100) Cash purchases (10,200) Payments for April (credit) purchases (18,250) Purchase of equipment (42,200) Operating expenses (3,250) $ 55, 150 Ending balance Calculate the inventory balance. Inventory Beginning balance $ 29,200 Add: Purchases 46,700 Less: Cost of goods sold 53,400) 22,500 Ending balance Calculate the owners' equity balance. Owners' Equity Beginning balance $ 93,600 Add Revenues 89,000 Less Expenses (66,800) $ 115,800 Ending balancePrepare the budgeted balance sheet for Intelligent Printing at April 30. Current assets: Accounts receivable Total current assets Plant assets: Accumulated depreclatlon Current liabilities: Accrued expenses payable Requirement 2. Prepare the combined cash budget for April. Intelligent Printing Combined Cash Budget Month Ended April 30 Beginning cash balance, April 1 $ 40,900 Cash collections from customers 105,250 Total cash available 146, 150 Less cash payments: Purchases $ (45,550) Operating expenses (3,250) Acquisition of equipment (42,200) (91,000) Ending cash balance, April 30 55, 150 Requirement 3. Suppose Intelligent Printing 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 $16,000? (For this requirement, disregard the $42,200 initially budgeted for equipment purchases.) The amount of cash available for equipment purchases in April, before financing, if the minimum desired ending cash balance is $16,000 (and disregarding the $42,200 initially budgeted for equipment purchases) is $ 81,350 . Requirement 4. Before granting a loan to Intelligent Printing, Scotiabank asks for a sensitivity analysis assuming that April sales are only $59,333 rather than the $89,000 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 the earlier requirements.) a. Prepare a revised budgeted balance sheet for Intelligent Printing, showing separate computations for cash, inventory, and owners' equity balances. Begin by calculating the cash balance. (Round your answers to the nearest whole dollar.) Cash Beginning balance $ 40,900 Cash inflows: Cash sales 41,533 Collections 38,500 Cash outflows: Payment of March liabilities (17,100) Cash purchases (10,200) Payments for April (credit) purchases (18,250) Purchase of equipment (42,200) Operating expenses paid (3,250) 29,933 Ending balanceCalculate the inventory balance. (Round your answers to the nearest whole dollar.) Beginning balance Cost of goods sold Calculate the owners' equity balance. (Round your answers to the nearest whole dollar.) Beginning balance Prepare the DUUQGIECI DBIBI'IOB sneer TOT Intelligent Prlnung BI Apr" 3U. Current assets: Accounts receivable Total current assets Plant assets: Accumulated depreciation Current liabilities: Accrued expenses payable b. Suppose Intelligent Printing has a minimum desired cash balance of $16,000. Will the company need to borrow cash in April? Owners' equity The company - have to borrow cash in April if sales revenue is $59,333. The company's cash balance is $- - than the minimum balance at $16,000. 6. In this sensitivity analysis, sales declined by 33 113% ($29,657 I $89,000). Is the decline in expenses and income more or less than 33 1/396? Explain. In the sensitivity analysis, the decline in expenses is - 33 \"3%. so the decline in income is - 33 113%. c. In this sensitivity analysis. sales declined by 33 1/336 (32915671589000) Is the dedine in expenses and income more or less than 33 \"3%? Explain. In the sensitivity analysis, the decline in expenses is less than 33 \"3%, so the decline in income is more than 33 113%. (Enter the percentage rounded to one decimal place.) In the original analysis. expenses are 3 66,800'. when sales decline to $59,333 in Requirement 4, expenses decline to 3 49,000'. Thus, expenses declined by 26.3% Expenses decline less ' rapidly than sales because xed expenses remain the same despite the sales decline. At Intelligent Printing, operating expenses and depredation expense are xed V costs. These costs remain the same whether sales are $80,000 or 859.333. (Enter an percentage rounded to one decimal place.) Because expenses do not decline as much as sala declines. income/(loss) declines more rapidly than sales. In the original analysis in Requirement 1. income was $ 22.200', However. when sales decline to $59333 in Requirement 4. income declines lo 5 10.333'. This is a 53.5% decline in income. Key Printing of Alberta has applied for a loan. Scotiabank has requested a budgeted balance sheet as of April 30 and a combined cash budget for April. As Key Printing's controller, you have assembled the following information: (Click the icon to view the information.) Requirements C.. Requirement 1. Prepare the budgeted balance sheet for Key Printing at April 30. Show separate computations for cash, inventory, and owners' equity balances. - X Data table Begin by calculating the cash balance. Cash - X Requirements a. March 31 equipment balance, $52,400; accumulated depreciation, $41,900 Beginning balance . April capital expenditures of $42, 100 budgeted for cash purchase of equipment Cash inflows: c. April depreciation expense, $600 1. Prepare the budgeted balance sheet for Key Printing at April 30. Show separate computations for d. Cost of goods sold, 60% of sales Cash sales cash, inventory, and owners' equity balances. e. Other April operating expenses, including income tax, total $13,200, 35% of which will be paid in cash Collections 2. Prepare the combined cash budget for April. and the remainder accrued at April 30 3. Suppose Key Printing has become aware of more efficient (and more expensive) equipment than March 31 owners' equity, $92,000 Cash outflows: it budgeted for purchase in April. What is the total amount of cash available for equipment g. March 31 cash balance, $40,400 h. April budgeted sales, $84,000, 65% of which is for cash. Of the remaining 35%, half will be collected in Payment of March liabilities purchases in April, before financing, if the minimum desired ending cash balance is $20,000? (For this requirement, disregard the $42,100 initially budgeted for equipment purchases.) April and half in May Cash purchases 4. Before granting a loan to Key Printing, Scotiabank asks for a sensitivity analysis assuming that i. April cash collections on March sales, $29,200 April sales are only $56,000 rather than the $84,000 originally budgeted. (While the cost of goods j. April cash payments of March 31 liabilities incurred for March purchases of inventory, $17,200 Payments for April (credit) purchases sold will change, assume that purchases, depreciation, and the other operating expenses will k. March 31 inventory balance, $29, 100 Purchase of equipment remain the same as in the earlier requirements.) I. April purchases of inventory, $10,200 for cash and $36,800 on credit. Half of the credit purchases will a. Prepare a revised budgeted balance sheet for Key Printing, showing separate computations be paid in April and half in May Operating expenses for cash, inventory, and owners' equity balances. b. Suppose Key Printing has a minimum desired cash balance of $20,000. Will the company Ending balance need to borrow cash in April? c. In this sensitivity analysis, sales declined by 33 1/3% ($28,000 / $84,000). Is the decline in expenses and income more or less than 33 1/3%? Explain Print Done Print Done