Sheet Printing of Mississauga has applied for a loan. Scotiabank has requested a budgeted balance sheet as of April 30 and a combined cash budget for April. As Sheet Printing's controller, you have assembled the following information: (Click the icon to view the information.) Requirements Requirement 1. Prepare the budgeted balance sheet for Sheet Printing at April 30. Show separate computations for cash, inventory, and owners' equity balances. Begin by calculating the cash balance. - X Cash Data table Beginning balance Cash inflows: a. March 31 equipment balance, $52,300; accumulated depreciation, $41,900 Cash sales b. April capital expenditures of $42,500 budgeted for cash purchase of equipment Collections c. April depreciation expense, $400 d. Cost of goods sold, 45% of sales Cash outflows: e . Other April operating expenses, including income tax, total $13,000, 35% of which will be paid in cash and the remainder accrued at April 30 Payment of March liabilities f. March 31 owners' equity, $92,500 Cash purchases g. March 31 cash balance, $40,300 h. April budgeted sales, $88,000, 70% of which is for cash. Of the remaining 30%, half will be collected in Payments for April (credit) purchases April and half in May Purchase of equipment i. April cash collections on March sales, $29,000 j. April cash payments of March 31 liabilities incurred for March purchases of inventory, $17, 100 Operating expenses k. March 31 inventory balance, $29,900 I. April purchases of inventory, $10,800 for cash and $36,800 on credit. Half of the credit purchases will Ending balance be paid in April and half in MaySheet Printing of Mississauga has applied for a loan. Scotiabank has requested a budgeted balance sheet as of April 30 and a combined cash budget for April. As Sheet Printing's controller, you have assembled the following information: (Click the icon to view the information.) Requirements Requirement 1. Prepare the budgeted balance sheet for Sheet Printing at April 30. Show separate computations for cash, inventory, and owners' equity balances. Begin by calculating the cash balance. Cash - X Requirements Beginning balance Cash inflows: Cash sales 1. Prepare the budgeted balance sheet for Sheet Printing at April 30. Show separate computations for cash, inventory, and owners' equity balances. Collections 2. Prepare the combined cash budget for April. Cash outflows: 3. Suppose Sheet 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 Payment of March liabilities purchases in April, before financing, if the minimum desired ending cash balance is $16,000? (For Cash purchases this requirement, disregard the $42,500 initially budgeted for equipment purchases.) 4. Before granting a loan to Sheet Printing, Scotiabank asks for a sensitivity analysis assuming that Payments for April (credit) purchases April sales are only $58,667 rather than the $88,000 originally budgeted. (While the cost of goods Purchase of equipment sold will change, assume that purchases, depreciation, and the other operating expenses will remain the same as in the earlier requirements.) Operating expenses a. Prepare a revised budgeted balance sheet for Sheet Printing, showing separate computations for cash, inventory, and owners' equity balances Ending balance b. Suppose Sheet Printing has a minimum desired cash balance of $21,000. Will the company need to borrow cash in April? c. In this sensitivity analysis, sales declined by 33 1/3% ($29,333 / $88,000). Is the decline in expenses and income more or less than 33 1/3%? Explain