P9-62A Combined cash budget and a budgeted balance sheet (Learning Objective 3) Hugo Medical Supply...
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P9-62A Combined cash budget and a budgeted balance sheet (Learning Objective 3) Hugo Medical Supply has applied for a loan. Pacific Commerce Bank has requested a budgeted balance sheet as of April 30 and a combined cash budget for April. As Hugo Medical Supply's controller, you have assembled the following information: a. March 31 equipment balance, $52,600; accumulated depreciation, $41,300 b. April capital expenditures of $42,400 budgeted for cash purchase of equipment c. April depreciation expense, $700 d. Cost of goods sold, 60% of sales e. Other April operating expenses, including income tax, total $14,200, 35% of which will be paid in cash and the remainder accrued at April 30 f. March 31 owners' equity, $92,600 g. March 31 cash balance, $40,300 h, April budgeted sales, $90,000, 70% of which is for cash. Of the remaining 30%, half will be collected in April and half in May. i. April cash collections on March sales, $29,100 j. April cash payments of March 31 liabilities incurred for March purchases of inventory, $17,300 k. March 31 inventory balance, $29,200 1. April purchases of inventory, $10,700 for cash and $36,300 on credit. Half of the credit purchases will be paid in April and half in May
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