Data Table X Requirements 1 Prepare the budgeted balance she

Data Table -X Requirements 1. Prepare the budgeted balance sheet for Note Medical Supply at April 30. Show separate a. March 31 equipment balance, S52,700; accumulated depreciation, S41,900 b. April capital expenditures of $42,300 budgeted for cash purchase of equipment. c. April depreciation expense, $200 d. Cost of goods sold, 60% of sales. e. Other April operating expenses, including income tax, total $13,400, 25% of which will be paid in cash computations for cash, inventory, and owners\' equity balances. 2. Prepare the combined cash budget for April 3. Suppose Note Medical Supply has become aware of more efficient (and more expensive) equipment than it budgeted for purchase in April. What is the total amount of cash available for equipment purchases in April, before financing, if the minimum desired ending cash balance is $17,000? (For this requirement, disregard the S42,300 initially budgeted for equipment and the remainder accrued at April 30. f. March 31 owners\' equity, $92,600 g. March 31 cash balance, $40,000 h. April budgeted sales, $84,000, 70% of which is for cash. Of the remaining 30%, half will be collected in 4. Before granting a loan to Note Medical Supply, Metropolitan National Bank asks for a sensitivity April and half in May. i. April cash collections on March sales, $29,200. j. April cash payments of March 31 liabilities incurred for March purchases of inventory, $17,000 k. March 31 inventory balance, $29,600 l. April purchases of inventory, $10,600 for cash and $36,300 on credit. Half of the credit purchases wil analysis assuming that April sales are only $56,000 rather than the $84,000 originally budgeted. (While the cost of goods sold will change, assume that purchases, depreciation, and the other operating expenses will remain the same as in the earier requirements.) a. Prepare a revised budgeted balance sheet for Note Medical Supply, showing separate computations for cash, inventory, and owners\' equity balances. b. Suppose Note Medical Supply has a minimum desired cash balance of $21,000. Will the be paid in April and half in May. company need to borrow cash in April? PrintDone Print Done

Solution

Beginning Balance

40000

Cash Inflows :-

Cash Sales   (84000 * 70%)

58800

Collections   [(84000 * 30%)/2 ]   +   29200

41800

Cash Outflows:-

Payment of March Liabilities

(17000)

Cash Purchases

(10600)

Payment for April (credit) Purchases    (36300/2)

(18150)

Purchase of Equipment

(42300)

Operating Exp   (13400 * 25%)

(3350)

Ending Balance

49200

Beginning Balance	40000
Cash Inflows :-
Cash Sales   (84000 * 70%)	58800
Collections   [(84000 * 30%)/2 ]   +   29200	41800
Cash Outflows:-
Payment of March Liabilities	(17000)
Cash Purchases	(10600)
Payment for April (credit) Purchases    (36300/2)	(18150)
Purchase of Equipment	(42300)
Operating Exp   (13400 * 25%)	(3350)
Ending Balance	49200