Concept explainers
Preparing a comprehensive budgeting problem−merchandising company
Learning Objective 5, 6
6. Total cash pmts. $88,200
7. NI $300
Belton Printing Company of Baltimore has applied for a loan. Its bank has requested a
BELTON PRINTING COMPANYBalance SheetMarch 31, 2018 | ||
Assets | ||
Current Assets: | ||
Cash | $51,100 | |
13,600 | ||
Merchandise Inventory | 12,000 | |
Total Current Assets | $76,700 | |
Property, Plant, and Equipment: | ||
Equipment and Fixtures | 81,100 | |
Less: Accumulated |
(12,400) | 68,700 |
Total Assets | $145,400 | |
Liabilities | ||
Current Liabilities: | ||
Accounts Payable | $8,300 | |
Common Stock, no par | $35,000 | |
102,100 | ||
Total Stockholders’ Equity | 137,100 | |
Total Liabilities and Stockholders’ Equity | $145,400 |
As Belton Printings controller, you have assembled the following additional information:
a. April dividends of $7,000 were declared and paid.
b. April capital expenditures of $17,000 budgeted for cash purchase of equipment.
c. April depreciation expense, $800.
d. Cost of goods sold, 55% of sales.
e. Desired ending inventory for April is $24.800.
f. April selling and administrative expenses includes salaries of $29,000, 20% 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 10% of sales, all paid in April.
h. April budgeted sales, $86,000, 80% collected in April and 20% in May.
i. April cash payments of March 31 liabilities incurred for March purchases of inventory, $8,300.
j. April purchases of inventory, $22,900 for cash and $37,200 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 for selling and administrative expenses for April.
6. Prepare the
7. Prepare the budgeted income statement for April.
8. Prepare the budgeted balance sheet at April 30, 2018.
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EBK HORNGREN'S ACCOUNTING
- Question Question The management accountant at Miller Merchandising & More, Odail Russell is in the process ofpreparing the cash budget for the business for the fourth quarter of 2021. It is customary for thebusiness to borrow money during this quarter. Extracts from the sales and purchases budgets areas follows:Month cash sales sales on account purchasesAugust $85,000 $640,000 $420,000September $70,000 $550,000 $550,000October $88,550 $600,000 $500,000November $77,160 $800,000 $600,000December $174,870 $500,000 $450,000 ii) Expected purchases include monthly cash purchases of 5%. All other purchases are on account. Accounts payable are settled as follows, in accordance with the credit terms –2/30, n60:60% in the month in which the inventory is purchased40% in the following month Required:(a)…arrow_forwardQuestion ANSWER B ONLY AND CALCULATE TOTAL The management accountant at Miller Merchandising & More, Odail Russell is in the process of preparing the cash budget for the business for the fourth quarter of 2021. It is customary for the business to borrow money during this quarter. Extracts from the sales and purchases budgets are as follows:Month Cash Sales Sales on Account PurchasesAugust $85,000 $640,000 $420,000September 70,000 550,000 550,000October 88,550 600,000 500,000 November 77,160 800,000 600,000December 174,870 500,000 450,000 i) An analysis of the records shows that trade receivables are settled according to the following credit pattern, in accordance with the credit terms 4/30, n90:50%…arrow_forwardQuestion 1 The management accountant at Miller Merchandising & More, Odail Russell is in the process of preparing the cash budget for the business for the fourth quarter of 2021. It is customary for the business to borrow money during this quarter. Extracts from the sales and purchases budgets are as follows: Month Cash Sales Sales On Account Purchases August $85,000 $640,000 $420,000 September $70,000 $550,000 $550,000 October $88,550 $600,000 $500,000 November $77,160 $800,000 $600,000 December $174,870 $500,000 $450,000 - An analysis of the records shows that trade receivables are settled according to the following credit pattern, in accordance with the credit terms 4/30, n90: 50% in the month of sale 30% in the first month following the sale 20% in the second month following the sale -Expected purchases include monthly cash purchases of 5%. All other purchases are on Accounts payable are settled as follows,…arrow_forward
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