ALLIANCE PRINTING SUPPLY Balance Sheet March 31, 2018 Assets Current Assets: Cash $ 50,700 Accounts Receivable 15,500 Merchandise Inventory 12,000 Total Current Assets $ 78,200 Property. Plant, and Equipment: Equipment and Fixtures 80,500 Less: Accumulated Depreciation (12,900) 67,600 Total Assets $ 145,800 Liabilities Current Liabilities: Accounts Payable $ 8,600 Stockholders' Equity Common Stock, no par $ 38,000 Retained Earnings 99,200 Total Stockholders' Equity 137,200 Total Liabilities and Stockholders' Equity $ 145,800

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Completing a comprehensive budgeting problem—merchandising Company

Alliance Printing Supply of Baltimore has applied for a loan. Its bank has requested a budgeted income statement for April 2018 and a balance sheet at April 30, 2018. The March 31, 2018, balance sheet follows:

As Alliance Printing Supply’s controller, you have assembled the following additional information:

  • April dividends of $7,000 were declared and paid.
  • April capital expenditures of $16,300 budgeted for cash purchase of equipment.
  • April depreciation expense, $1,000.
  • Cost of goods sold, 40% of sales.
  • Desired ending inventory for April is $22,400.
  • April selling and administrative expenses include salaries of $37,000, 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 10% of sales, all paid in April.
  • April budgeted sales, $89,000, 80% collected in April and 20°/0 in May.
  • April cash payments of March 31 liabilities incurred for March purchases of inventory, $8,600.
  • April purchases of inventory, $8,600 for cash and $37,400 on account. Half the credit purchases will be paid in April and half in May.

Requirements

  1. Prepare the sales budget for April.
  2. Prepare the inventory, purchases, and cost of goods sold budget for April.
  3. Prepare the selling and administrative expense budget for April.
  4. Prepare the schedule of cash receipts from customers for April.
  5. Prepare the schedule of cash Payments of Selling and administrative expenses for April.
  6. Prepare the cash budget for April. Assume the company does not use short-term financing to maintain a minimum cash balance.
  7. Prepare the budgeted income statement for April.
  8. Prepare the budgeted balance sheet at April 30, 2018
ALLIANCE PRINTING SUPPLY
Balance Sheet
March 31, 2018
Assets
Current Assets:
Cash
$ 50,700
Accounts Receivable
15,500
Merchandise Inventory
12,000
Total Current Assets
$ 78,200
Property. Plant, and Equipment:
Equipment and Fixtures
80,500
Less: Accumulated Depreciation
(12,900)
67,600
Total Assets
$ 145,800
Liabilities
Current Liabilities:
Accounts Payable
$ 8,600
Stockholders' Equity
Common Stock, no par
$ 38,000
Retained Earnings
99,200
Total Stockholders' Equity
137,200
Total Liabilities and Stockholders' Equity
$ 145,800
Transcribed Image Text:ALLIANCE PRINTING SUPPLY Balance Sheet March 31, 2018 Assets Current Assets: Cash $ 50,700 Accounts Receivable 15,500 Merchandise Inventory 12,000 Total Current Assets $ 78,200 Property. Plant, and Equipment: Equipment and Fixtures 80,500 Less: Accumulated Depreciation (12,900) 67,600 Total Assets $ 145,800 Liabilities Current Liabilities: Accounts Payable $ 8,600 Stockholders' Equity Common Stock, no par $ 38,000 Retained Earnings 99,200 Total Stockholders' Equity 137,200 Total Liabilities and Stockholders' Equity $ 145,800
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