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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
The Best Chocolate Company is a wholesale distributor of premium European chocolates. The companys balance sheet on March is as follows:
THE BEST CHOCLOLATE COMPANY
Balance Sheet
March
Assets
Cash $
Accounts receivable, customers
Inventory
Buildings and equipment, net of depreciation
Total assets $
Liabilities and Shareholders Equity
Accounts payable, suppliers $
Note payable
Capital shares, no par
Retained earnings
Total liabilities and shareholders equity $
The company is in the process of preparing budget data for April. A number of budget items have already been prepared, as follows:
Sales are budgeted at $ for April. Of these sales, $ will be for cash; the remainder will be credit sales. Onehalf 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 receivables will be collected in April.
Purchases of inventory are expected to total $ during April. These purchases will all be on account. of all purchases are paid for in the month of purchase; the remainder are paid in the following month. All of the March accounts payable to suppliers will be paid during April.
The April inventory balance is budgeted at $
Operating expenses for April are budgeted at $ exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $ for the month.
The note payable on the March balance sheet will be paid during April, with $ in interest. All of the interest relates to April.
New refrigerating equipment costing $ will be purchased for cash during April.
During April, the company will borrow $ from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year.
QPrepare a cash budget for April. Any "Repayments" and "Interest" should be indicated by a minus sign.
Prepare a budgeted income statement for April.
Prepare a budgeted balance sheet as of April
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