Question

Medical Supply has applied for a loan. America's Bank has requested a budgeted balance sheet as of April​ 30, and a combined cash budget for April. As Instrument

Medical​ Supply's controller, you have assembled the following​information:

Data Table:

a	March 31 equipment​ balance,$52,200​; accumulated​depreciation,$41,000.
b.	April capital expenditures of $42,900 budgeted for cash purchase of equipment.
c.	April depreciation​ expense,$900.
d.	Cost of goods​ sold, 55​% of sales.
e.	Other April operating​ expenses, including income​ tax, total $13,000​, 30​% of which will be paid in cash and the remainder accrued at April 30.
f.	March 31​ owners' equity, $92,800.
g.	March 31 cash​ balance, $40,000.
h.	April budgeted​ sales, $91,000​, 70​% of which is for cash. Of the remaining 30​%, half will be collected in April and half in May.
i.	April cash collections on March​ sales, $29,600.
j.	April cash payments of March 31 liabilities incurred for March purchases of​ inventory, $17,400.
k.	March 31 inventory​ balance, $29,400.
l.	April purchases of​ inventory, $10,100 for cash and $36,700 on credit. Half of the credit purchases will be paid in April and half in May.

Prepare the budgeted balance sheet for

InstrumentInstrument

Medical Supply at April 30.

	Instrument Medical Supply
	Budgeted Balance Sheet
	April 30

Assets
Current assets:
Cash
Accounts receivable
Inventory
Total current assets
Plant assets:
Equipment
Accumulated depreciation
Total assets

Answer 1

Asset
Cash		$ 54,300.00
Account Receivable		$ 13,650.00		91000*15%	April Credit sales not paid 15%
Inventory		$ 26,150.00
Total Current Asset		$ 94,100.00
Plant Asset
Equipment	$95,100.00
Less Acc Depn.	-$41,900.00	$53,200.00
Total Asset		$147,300.00

Calculation of cash Balance

Beginning Balance		40,000.00
Cash Inflows		13,650.00		91000*15%	Remaining 15% cash collection on credit sales
Cash Sales		63,700.00		91000*70%	Cash Sales
Collections		29,600.00				March credit sales collection
Cash Outflows		-42,900.00				Budgeted cash payment toward equipment purchases
Payment of March Liabilitieds	-17,400.00				Payment toward march inventory purchases
Cash Purchases		-10,100.00				Cash purchases of inventory in April
Payment for april Purchases	-18,350.00				Payment toward 50% credit purchases
Operating expenses		-3,900.00		13000*30%	30% payment toward other operating exp.
Ending Balance		54,300.00

Calculation of Inventory

Inventory
Open Bal		$ 29,400.00
Cash Purchases		$ 10,100.00
Credit Purchases		$ 36,700.00
Less
COGS		$ -50,050.00		91000*55%
Closing Bal		$ 26,150.00

Calculation of Equipment

			Equipment
Asset				Accu. Depn
Open Bal		$ 52,200.00		Acc.Depm	$ 41,000.00
Additions		$ 42,900.00		Additions		$       900.00
Ending Balance	$ 95,100.00		Ending Balance	$ 41,900.00