Chapter 22, Problem P22.56BPGB

To determine

Budgets in Merchandise Company:

The budgets of merchandising company differ from manufacturing company because a merchandising company does not produce anything instead it purchases from the manufacturer. So in merchandising companies, the budgets of production, direct material, direct labor or manufacturing are not prepared instead the budget of inventory, purchases budgets are prepared.

To determine:

1. Prepare sales budget for April.

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

3. Prepare 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 for selling and administrative expenses for April.

6. Prepare the cash budget for April.

7. Prepare the budgeted income statement for April.

8. Prepare budgeted balance sheet as of April 30, 2016.

9. Prepare the budgeted statement of cash flows for April.