Sheet Printing Supply of Baltimore has applied for a loan. Its bank has requested a budgeted balance sheet at

April 30,2016 and a budgeted statement of cash flows for April.

The March 31, 2016 balance sheet follows:

As Sheet Printing Supply's controller, you have assembled the following additional information:

Sheet Printing Supply
Balance Sheet
March 31, 2016
Assets
Current Assets:
Cash		$50,700
Accounts Receivable		16,300
Merchandise Inventory		12,000
Total Current Assets				$79,000
Property, Plant, and Equipment:
Equipment and Fixtures		81,300
Less: Accumulated Depreciation		(12,000)		69,300
Total Assets				$148,300
Liabilities
Current Liabilities:
Accounts Payable					$7,800
Stockholders' Equity
Common Stock, no par			$24,000
Retained Earnings			116,500
Total Stockholders' Equity					140,500
Total Liabilities and Stockholders' Equity					$148,300

a. April dividends of $ 5 comma 500$5,500 were declared and paid.

b. April capital expenditures of $ 16 comma 300$16,300 budgeted for cash purchase of equipment.

c. April depreciation expense, $ 1000$1000.

d. Cost of goods sold, 4040% of sales.

e. Desired ending inventory for April is $20,300.

f. April selling and administrative expenses include salaries of $35, 000, 30% of which will be paid in cash and the remainder paid next month.

g. Additional April selling and administrative expenses also include miscellaneous expenses of 10 ofsales, all paid in April.

h. April budgetedsales$85,000, 50% collected in April and 5050% in May.

i. April cash payments of March 31 liabilities incurred for March purchases of inventory, $ 7 comma 800$7,800.

j. April purchases of inventory, $5,100 for cash and $ 37 comma 200$37,200 on account. Half the credit purchases will be paid in April and half in May.

Requirement 1. Prepare the sales budget for April.

Sheet Printing Supply
Sales Budget
For the Month Ended April 30, 2016
	Total budgeted sales

Requirement 2. Prepare the inventory, purchases, and cost of goods sold budget for

April.

Sheet Printing Supply
Inventory, Purchases, and Cost of Goods Sold Budget
For the Month Ended April 30, 2016
Cost of goods sold
Plus:	Desired ending merchandise inventory
Total merchandise inventory required
Less:	Beginning merchandise inventory
Budgeted Purchases

Requirement 3. Prepare the selling and administrative expense budget for

April.

Sheet Printing Supply
Selling and Administrative Expense Budget
For the Month Ended April 30, 2016
	Variable expenses:
	Miscellaneous expense
	Fixed expenses:
	Salaries expense
	Depreciation expense
	Total fixed expenses
	Total selling and administrative expenses

Requirement 4. Prepare the budgeted cash receipts from customers for

April.

Sheet Printing Supply
Budgeted Cash Receipts from Customers
For the Month Ended April 30, 2016
Current month sales, 50%
Prior month sales, 50%
Total cash receipts

Requirement 5. Prepare the budgeted cash payments for selling and administrative expenses for

AprilApril.

Sheet Printing Supply
Budgeted Cash Payments for Selling and Administrative Expenses
For the Month Ended April 30, 2016
	Variable expenses:
	Miscellaneous expenses
	Fixed expenses:
	30% of current month's salaries expense
	Total payments for selling and administrative expenses

Requirement 6. Prepare the cash budget for April.

Assume the company does not use short-term financing to maintain a minimum cash balance.

...

Sheet Printing Supply
Cash Budget
For the Month Ended April 30, 2016
Beginning cash balance
Cash receipts from customers
Cash available
Cash payments:
Selling and administrative expenses
Payments for dividend
Purchases of merchandise inventory
Capital expenditures
Total cash payments
Ending cash balance

Requirement 7. Prepare the budgeted income statement for

April

Sheet Printing Supply
Budgeted Income Statement
For the Month Ended April 30, 2016
Sales Revenue
Cost of Goods Sold
Gross Profit
Selling and Administrative Expenses:
Miscellaneous Expense
Depreciation Expense
Salaries Expense
Total Selling and Administrative Expenses
Net income (loss)

Requirement 8. Prepare the budgeted balance sheet at

April 30 2016

April 30, 2016
Assets
Current Assets:
Cash
Accounts Receivable
Merchandise Inventory
Total Current Assets
Property, Plant, and Equipment
Equipment and Fixtures
Less: Accumulated Depreciation
Total Assets
Liabilities
Current Liabilities:
Accounts Payable
Salaries Payable
Total Liabilities
Stockholders' Equity
Common Stock
Retained Earnings
Total Stockholders' Equity
Total Liabilities and Stockholders' Equity

Requirement 9. Prepare the budgeted statement of cash flows for

April.

Sheet Printing Supply
Budgeted Statement of Cash Flows
For the Month Ended April 30, 2016
	Operating Activities:
	Cash payments for selling and administrative expenses
	Net cash provided by (used by) operating activities
	Investing Activities:
	Net cash provided by (used by) investing activities
	Financing Activities:
	Net cash provided by (used by) financing activities
Net increase (decrease) in cash
Cash balance, April 1, 2016
Cash balance, April 30, 2016