70.2K

Verified Solution

Link Copied!

Chair Printing Supply of Baltimore has applied for a loan. Its bank has requested a budgeted income statement for

April 2024 and budgeted balance sheet at April 30, 2024. The March 31, 2024, balance sheet follows:

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

a.	April dividends of $2,000 were declared and paid.
b.	April capital expenditures of $16,400 budgeted for cash purchase of equipment.
c.	April depreciation expense, $700.
d.	Cost of goods sold, 55% of sales.
e.	Desired ending inventory for April is $27,100.
f.	April selling and administrative expenses include salaries of $31,000, 40% 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 5% of sales, all paid in April.
h.	April budgeted sales, $85,000, 70% collected in April and 30% in May.
i.	April cash payments of March 31 liabilities incurred for March purchases of inventory, $8,100.
j.	April purchases of inventory, $23,750 for cash and $37,800 on account. Half the credit purchases will be paid in April and half in May.

Requirement 1. Prepare the sales budget for April.

Chair Printing Supply
Sales Budget
For the Month Ended April 30, 2024
	Total budgeted sales	?

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

Chair Printing Supply
Inventory, Purchases, and Cost of Goods Sold Budget
For the Month Ended April 30, 2024
?
Plus: ?
Total merchandise inventory required
Less: ?
Budgeted Purchases

Requirement 3. Prepare the selling and administrative expense budget for April.

Chair Printing Supply
Selling and Administrative Expense Budget
For the Month Ended April 30, 2024
	Variable expenses:
	?
	Fixed expenses:
	?
	?
	Total fixed expenses
	Total selling and administrative expenses

Requirement 4. Prepare the budgeted cash receipts from customers for April.

Chair Printing Supply

Budgeted Cash Receipts from Customers

For the Month Ended April 30, 2024

Current month sales, 70%
Prior month sales, 30%
Total cash receipts

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

Chair Printing Supply
Budgeted Cash Payments for Selling and Administrative Expenses
For the Month Ended April 30, 2024
	Variable expenses:
	Miscellaneous expenses
	Fixed expenses:
	40% of current month's salaries expense
	Total payments for selling and administrative expenses

Part 6

Requirement 6. Prepare the cash budget for April. Assume the company does not use short-term financing to maintain a minimum cash balance.

Review the budgeted cash receipts from customers you prepared above.

Review the budgeted cash payments for selling and administrative expenses you prepared above.

Chair Printing Supply

Cash Budget

For the Month Ended April 30, 2024

?
?
Cash available
Cash payments:
?
?
?
?
Total cash payments
Ending cash balance

Requirement 7. Prepare the budgeted income statement for April.

Review the sales budget you prepared above.

Review the selling and administrative expense budget you prepared above.

Review the inventory, purchases, and cost of goods sold budget you prepared above.

Chair Printing Supply
Budgeted Income Statement
For the Month Ended April 30, 2024
?
?
Gross Profit
Selling and Administrative Expenses:
?
?
?
Total Selling and Administrative Expenses
Net income (loss)

Requirement 8. Prepare the budgeted balance sheet at April 30, 2024.

Review the cash budget you prepared above.

Chair Printing Supply
Budgeted Balance Sheet
April 30, 2024
Assets
Current Assets:
?
?
?
Total Current Assets
Property, Plant, and Equipment:
?
?
Total Assets

Liabilities
Current Liabilities:
?
?
Total Liabilities
Stockholders' Equity
?
?
Total Stockholders' Equity
Total Liabilities and Stockholders' Equity

Chair Printing Supply Balance Sheet March 31, 2024 Assets Current Assets: Cash Accounts Recelvable Merchandise Inventory Total Current Assets Property, Plant, and Equipment: Equipment and Fixtures Less: Accumulated Depreciation Total Assets 551,100 16.300 12,300 \$ 79,700 80,400 (13,100) 67,300 147,000 Liabilities Current Liabilities: Accounts Payable $8,100 Stockholders' Equity Commion Stock, no par 26,000113,900 Retained Earnings Total Stockholders' Equity Total Liabisies and Stockholders' Equity 138,900$147,000

Answer & Explanation Solved by verified expert

See Answer