Horngren's Accounting, The Financial Chapters (11th Edition) - Standalone Book

11th Edition

ISBN: 9780133866889

Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura

Publisher: PEARSON

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Textbook Question

Chapter 22, Problem P22.47APGA

Completing a comprehensive budgeting problem merchandising

Professional pricing Supply of Bedsore has applied for a loan. Its bank has requested a budgeted balance sheet at April 30, 2016, and a budgeted statement of cash flows for April. The March 31, 2016, balance sheet follows:

Chapter 22, Problem P22.47APGA, Completing a comprehensive budgeting problem merchandising Professional pricing Supply of Bedsore

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

April dividends of $4,000 were declared and paid.
April capital expenditures of $16,600 budgeted for cash purchase of equipments.
April depreciation expense, $600.
Cost of goods sold, 40% of sales.
Desired ending inventory for April is $23,600.
April selling and administrative expenses include salaries of $36,000, 40% 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, $ 84,000, 70% collected in April and 30% in May.
April cash payments of March 31 liabilities incurred for March purchase of inventory, $7,900.
April purchases of inventory, $ 7,900 for cash and $37,100 on account. Half the credit purchase will be paid in April and half in May.

Requirement

Prepare the sales budget for April.
Prepare the inventory, purchase, and cost of goods sold budget for April.
Prepare the selling and administrative expense budget for April.
Prepare the schedule of cash receipts from customers for April.
Prepare the schedule of cash payments for selling and administrative expenses for April.
Prepare the cash budget for April. Assume the company does not use short-term financing to maintain a minimum cash balance.
Prepare the budgeted income statement for April.
Prepare the budgeted balance sheet at April 30, 2016.
Prepare the budgeted statement of cash flows for April.

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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Chapter 22, Problem P22.46APGA

Chapter 22, Problem P22.48BPGB

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Chapter 22 Solutions

Horngren's Accounting, The Financial Chapters (11th Edition) - Standalone Book

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