P22-30B Greely Printing of Albany has applied for a loan. Bank of America has re

Question

P22-30B Greely Printing of Albany has applied for a loan. Bank of America has requested a budgeted balance sheet at April 30, 2009, and a budgeted statement of cash flows for April. As Greely's controller, you have assem bled the following information: March 31 balance sheet information: Cash, $45,600; Accounts Receivable, 529,700; Inventory, $29,600; Equipment, S52,400; Accumalated Depreciation, S41,300; Accounts Payable, $17,300 Accrued Liabilities, S0; Owner's Equiry, S98,700 Planned April operating activity information a. Purchase inventory costing S46,800, paying $10,000 in cash and S36,800 on credit. b. Sales,590,000, 70% of which is for cash. The remaining 30% is credit sales C. Cost of goods sold, 60% of sales d. April depreciation expense, $900 e. Other April operating expenses, including income Tax, rotal s 13,200, 25% of which will be paid in cash and the remainder accrued ar April 30 Planned April cash information: a. Collect 543,200 from customers on account. b. Pay S35,700 to creditors and suppliers. c. Pay cash for equipment costing $42,800 Requirements 1. Use rhe accounting equation on page 11 to prepare a worksheet with columns for each asset, liability, and owner's equity item. Enter the March 31 balance sheet information in the first row. Record the information above into the worksheet. Calculate the April 30 bal- ances by adding the numbers in each column. 2. Prepare the cash budger for April. ipp. 1115-1117) 3. Prepare the budgeted balance sheet for Greely Printing at April 30, 2009. p. 1117)

Explanation / Answer

1)

2)

Assets = Libility + Owners Equity March 31 Balance ($) Cash 45600 Accounts Receivable 29700 Inventory 29600 Equipment 52400 Accumulated Depreciation -41300 Accounts Payable 17300 Accrued lIabilities 0 Owners Equity 98700 Sub Total (a) 116000 = 17300 + 98700 April 30 Balances ($) Inventory -7200 Cash 14400 Accounts Receivable -16200 Depreciation 900 Income Tax 13200 Equipment 41900 Accounts Payable 1100 Accrued lIabilities 9900 Profit 36000 Sub Total (b) 47000 11000 36000 Total (a) + (b) 163000 = 28300 + 134700

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