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The Best Chocolate Company is a wholesale distributor of premium European chocolates. The company's balance sheet on March 3 1 is as follows: The company

The Best Chocolate Company is a wholesale distributor of premium European chocolates. The company's balance sheet on March
31 is as follows:
The company is in the process of preparing budget data for April. A number of budget items have already been prepared, as follows:
a. Sales are budgeted at $560,000 for April. Of these sales, $168,000 will be for cash; the remainder will be credit sales. One-half of a
month's credit sales are collected in the month the sales are made, and the remainder are collected in the following month. All of
the April 30 receivables will be collected in April.
b. Purchases of inventory are expected to total $336,000 during April. These purchases will all be on account. 40% of all purchases
are paid for in the month of purchase; the remainder are paid in the following month. All of the March 31 accounts payable to
suppliers will be paid during April.
c. The April 30 inventory balance is budgeted at $112,000.
d. Operating expenses for April are budgeted at $201,600, exclusive of depreciation. These expenses will be paid in cash.
Depreciation is budgeted at $5,600 for the month.
e. The note payable on the March 31 balance sheet will be paid during April, with $120 in interest. (All of the interest relates to April.)
f. New refrigerating equipment costing $10,100 will be purchased for cash during April.
g. During April, the company will borrow $56,000 from its bank by giving a new note payable to the bank for that amount. The new
g. During April, the company will borrow $56,000 from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year.
Required:
Prepare a cash budget for April. (Any "Repayments" and "Interest" should be indicated by a minus sign.)
\table[[The Best Chocolate Company,],[Cash Budget,],[For the Month Ended April 30,],[Total cash available,],[Deduct: Disbursements:,],[,],[,],[Total cash disbursements,],[Excess of receipts over disbursements,],[Financing:,],[,],[Total financing,]]
Prepare a budgeted income statement for April.
The Best Chocolate Company
Budgeted Income Statement
For the Month Ended April 30
\table[[,,],[Cost of goods sold:,,],[,,],[Goods available for sale,,0],[,,],[Cost of goods sold,,],[,,],[,,],[,,]]
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