True Printing Company of Baltimore 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:

True Printing Company
Balance Sheet
March 31, 2016
ASSETS
Current Assets:
Cash	$ 50,300
Accounts Receivable	17,100
Merchandise Inventory	12,100
Total Current Assets		$ 79,500
Property, Plant & Equipment:
Equipment and Fixtures	81,200
Less: Accumulated Depreciation	- 12,200	$ 69,000
Total Assets		$ 148,500
LIABILITIES
Current Liabilities:
Accounts Payable	8,300
Total Liabilities		$ 8,300
STOCKHOLDERS' EQUITY
Common Stock, no par	20,000
Retained Earnings	120,200
Total Stockholders' Equity		140,200
Total Liabilities & Stockholders' Equity		$ 148,500

Additional Information: As true Printing's controller, you have assembled the following additional information:

a. April dividends of $3,500 were declared and paid.

b. April capital expenditures of $16,900 budgeted for the cash purchase of equipment.

c. April depreciation expense, $200.

d. Cost of Goods Sold, 40% of sales

e. Desired ending inventory for April is $24,800

f. April selling and administrative expenses includes salaries of $39,000, 40% of whichwill 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, $87,000, 60% collected in April and 40% in May.

i. Apil cash payments of March 31 liabilities incurred for March purchases of inventory, $8,300.

j. April purchases of inventory, $9,900 for cash and $37,600 on account. Half the credit purchases will be paid in April and half in May. What has been solved is as follows:

Sales Budet for april

	APRIL
SALES	$ 87000
TOTAL	$ 87000

Answer 2

The inventory, purchases, and cost of goods sold budget for April.

PARTICULARS	APRIL
Cost of goods sold(40% of 87000)	34800
Desired ending inventory	24800
DESIRED INVNTORY	59600
Less: Beginning inventory	12100
Purchases	$47500

Answer 3

Selling and administrative budget for April.

PARTICULARS	APRIL
Selling and administrative expenses	39000
miscellaneous expenses (10% * 87000)	8700
TOTAL	47700

Answer 4

Schedule of cash receipts from customers for April.

PARTICULARS	APRIL
Receipts of April ( 60%* 87000)	52200
March recepts in April ie AR	17100
TOTAL	69300

Answer 5

schedule of cash payments for selling and administrative expenses for April.

PARTICULARS	APRIL
Salary (40% * 39000)	15600
miscellaneous expenses	8700
TOTAL	24300

Answer 6

PARTICULARS	APRIL
Opening cash	50300
Cash collections	69300
Total cash available	119600
CASH PAYMENTS
Purchases (8300 + 9900 + (37600/2) )	37000
Selling and administrative	24300
Capital Expenditure	16900
Total cash Payments	78200
Ending cash balace	41400

Answer 7

Budgeted income statement for April.

PARTICULARS	APRIL
Sales	87000
COGS	34800
Gross Profit	52200
Less:Selling and administrative	24300
Dep	200
Operating Income	27700

Required:

1. Prepare the budgeted balance sheet at April 30, 2016.

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