a. April dividends of $6,000 were declared and paid. b. April capital expenditures of $16,200 budgeted for cash purchase of equipment. c. April depreciation expense, $500. d. Cost of goods sold, 45% of sales. e. Desired ending inventory for April is $22,800. f. April selling and administrative expenses include salaries of $32,000, 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 15% of sales, all paid in April. h. April budgeted sales, $86,000, 50% collected in April and 50% in May. i. April cash payments of March 31 liabilities incurred for March purchases of inventory, $8,100. j. April purchases of inventory, $12,300 for cash and $37,500 on account. Half the credit purchases will be paid in April and half in May. 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 Tune Printing Supply's controller, you have assembled the following additional information: Requirement 1. Prepare the sales budget for April. Tune Printing Supply Sales Budget For the Month Ended April 30, 2024 Total budgeted sales $86,000 Requirement 2. Prepare the inventory, purchases, and cost of goods sold budget for April. Tune Printing Supply Inventory, Purchases, and Cost of Goods Sold Budget For the Month Ended April 30, 2024 Cost of goods sold $38,700 Plus: Desired ending merchandise inventory 22,800 Total merchandise inventory required 61,500 Less: Beginning merchandise inventory 11,700 Budgeted Purchases $49,800 Requirement 3. Prepare the selling and administrative expense budget for April. Tune Printing Supply Selling and Administrative Expense Budget For the Month Ended April 30, 2024 Variable expenses: Miscellaneous expense $12,900 Fixed expenses: Salaries expense 32,000 Depreciation expense 500 Total fixed expenses 32,500 Total selling and administrative expenses $45,400 Requirement 4. Prepare the budgeted cash receipts from customers for April. Tune Printing Supply Budgeted Cash Receipts from Customers For the Month Ended April 30, 2024 Current month sales, 50% $43,000 Prior month sales, 50% 14,200 Total cash receipts $57,200 Requirement 5. Prepare the budgeted cash payments for selling and administrative expenses for April. Tune Printing Supply Budgeted Cash Payments for Selling and Administrative Expenses For the Month Ended April 30, 2024 Variable expenses: Miscellaneous expenses $12,900 Fixed expenses: 30% of current month's salaries expense 9,600 Total payments for selling and administrative expenses $22,500 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 admin expenses prepared above. Tune Printing Supply Cash Budget For the Month Ended April 30, 2024 Beginning cash balance Cash receipts from customers Cash available Cash payments: Purchases of merchandise inventory Selling and administrative expenses Capital expenditures Payments for dividend Total cash payments Ending cash balance

a. April dividends of $6,000 were declared and paid. b. April capital expenditures of $16,200 budgeted for cash purchase of equipment. c. April depreciation expense, $500. d. Cost of goods sold, 45% of sales. e. Desired ending inventory for April is $22,800. f. April selling and administrative expenses include salaries of $32,000, 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 15% of sales, all paid in April. h. April budgeted sales, $86,000, 50% collected in April and 50% in May. i. April cash payments of March 31 liabilities incurred for March purchases of inventory, $8,100. j. April purchases of inventory, $12,300 for cash and $37,500 on account. Half the credit purchases will be paid in April and half in May. 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 Tune Printing Supply's controller, you have assembled the following additional information: Requirement 1. Prepare the sales budget for April. Tune Printing Supply Sales Budget For the Month Ended April 30, 2024 Total budgeted sales $86,000 Requirement 2. Prepare the inventory, purchases, and cost of goods sold budget for April. Tune Printing Supply Inventory, Purchases, and Cost of Goods Sold Budget For the Month Ended April 30, 2024 Cost of goods sold $38,700 Plus: Desired ending merchandise inventory 22,800 Total merchandise inventory required 61,500 Less: Beginning merchandise inventory 11,700 Budgeted Purchases $49,800 Requirement 3. Prepare the selling and administrative expense budget for April. Tune Printing Supply Selling and Administrative Expense Budget For the Month Ended April 30, 2024 Variable expenses: Miscellaneous expense $12,900 Fixed expenses: Salaries expense 32,000 Depreciation expense 500 Total fixed expenses 32,500 Total selling and administrative expenses $45,400 Requirement 4. Prepare the budgeted cash receipts from customers for April. Tune Printing Supply Budgeted Cash Receipts from Customers For the Month Ended April 30, 2024 Current month sales, 50% $43,000 Prior month sales, 50% 14,200 Total cash receipts $57,200 Requirement 5. Prepare the budgeted cash payments for selling and administrative expenses for April. Tune Printing Supply Budgeted Cash Payments for Selling and Administrative Expenses For the Month Ended April 30, 2024 Variable expenses: Miscellaneous expenses $12,900 Fixed expenses: 30% of current month's salaries expense 9,600 Total payments for selling and administrative expenses $22,500 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 admin expenses prepared above. Tune Printing Supply Cash Budget For the Month Ended April 30, 2024 Beginning cash balance Cash receipts from customers Cash available Cash payments: Purchases of merchandise inventory Selling and administrative expenses Capital expenditures Payments for dividend Total cash payments Ending cash balance

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

April

dividends of

$6,000

were declared and paid.

April

capital expenditures of

$16,200

budgeted for cash purchase of equipment.

April

depreciation expense,

$500.

Cost of goods sold,

45%

of sales.

Desired ending inventory for

April

$22,800.

April

selling and administrative expenses include salaries of

$32,000,

30%

of which will be paid in cash and the remainder paid next month.

Additional

April

selling and administrative expenses also include miscellaneous expenses of

15%

of sales, all paid in

April.

April

budgeted sales,

$86,000,

50%

collected in

April

and

50%

May.

April

cash payments of

March

liabilities incurred for

March

purchases of inventory,

$8,100.

April

purchases of inventory,

$12,300

for cash and

$37,500

on account. Half the credit purchases will be paid in

April

and half in

May.

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

Requirement 1. Prepare the sales budget for April.

Tune Printing Supply
Sales Budget
For the Month Ended April 30, 2024
	Total budgeted sales	$86,000

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

April.

Tune Printing Supply
Inventory, Purchases, and Cost of Goods Sold Budget
For the Month Ended April 30, 2024
Cost of goods sold	$38,700
Plus:	Desired ending merchandise inventory	22,800
Total merchandise inventory required	61,500
Less:	Beginning merchandise inventory	11,700
Budgeted Purchases	$49,800

Requirement 3. Prepare the selling and administrative expense budget for

April.

Tune Printing Supply
Selling and Administrative Expense Budget
For the Month Ended April 30, 2024
	Variable expenses:
	Miscellaneous expense	$12,900
	Fixed expenses:
	Salaries expense	32,000
	Depreciation expense	500
	Total fixed expenses	32,500
	Total selling and administrative expenses	$45,400

Requirement 4. Prepare the budgeted cash receipts from customers for

April.

Tune Printing Supply

Budgeted Cash Receipts from Customers

For the Month Ended April 30, 2024

Current month sales, 50%	$43,000
Prior month sales, 50%	14,200
Total cash receipts	$57,200

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

April.

Tune Printing Supply
Budgeted Cash Payments for Selling and Administrative Expenses
For the Month Ended April 30, 2024
	Variable expenses:
	Miscellaneous expenses	$12,900
	Fixed expenses:
	30% of current month's salaries expense	9,600
	Total payments for selling and administrative expenses	$22,500

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 admin expenses prepared above.

Tune Printing Supply

Cash Budget

For the Month Ended April 30, 2024

Beginning cash balance
Cash receipts from customers
Cash available
Cash payments:
Purchases of merchandise inventory
Selling and administrative expenses
Capital expenditures
Payments for dividend
Total cash payments
Ending cash balance

# Balance Sheet Overview

## Assets

### Current Assets:
- **Cash:** $51,000
- **Accounts Receivable:** $14,200
- **Merchandise Inventory:** $11,700

**Total Current Assets:** $76,900

### Property, Plant, and Equipment:
- **Equipment and Fixtures:** $80,900
- **Less: Accumulated Depreciation:** $(12,100)

**Net Property, Plant, and Equipment:** $68,800

**Total Assets:** $145,700

---

## Liabilities

### Current Liabilities:
- **Accounts Payable:** $8,100

---

## Stockholders' Equity

- **Common Stock, no par:** $40,000
- **Retained Earnings:** $97,600

**Total Stockholders' Equity:** $137,600

---

**Total Liabilities and Stockholders' Equity:** $145,700

---

### Explanation:
This balance sheet displays the financial position of a company by categorizing its resources and obligations. Assets are divided into current assets and long-term assets, including property and equipment, minus depreciation. Liabilities consist of short-term obligations, and stockholders' equity shows the owners' residual interest in the company. Total assets are equal to the total of liabilities and stockholders' equity, maintaining the balance sheet equation: Assets = Liabilities + Stockholders' Equity.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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