Chapter 9, Problem 9.64BP

1.

To determine

The budgeted balance sheet for BMS at April 30 by showing separate computations for cash, inventory, and owners’ equity balances.

2.

To determine

The combined cash budget for April.

3.

To determine

The total amount of cash available for equipment purchases in April, before financing, if the minimum desired ending cash balance is $13,000 (For this requirement, disregard the $42,700 initially budgeted for equipment purchases.).

4.

To determine

The followings:

a. Prepare a revised budgeted balance sheet for BMS, showing separate computations for cash, inventory, and owners’ equity balances if sell is decreased to$60,000.

b. Suppose BMS has a minimum desired cash balance of $18,000 calculate if company need to borrow the required amount.

c. The effect of decrease in sale of 33 1/3%  on income and expenses.