Instrument Medical Supply has applied for a loan. First National Bank has reques

Question

Instrument Medical Supply has applied for a loan. First National 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: EEE (Click the icon to view the information.) Read the requirements asn 40400 Beginning balance Cash inflows: 54600 Cash sales Collections Cash outflows: Payment of March liabilities Cash purchases Payments for April (credit) purchases Purchase of equipment Operating expenses [ Ending balance

Explanation / Answer

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you. Impact on Budgeted Sales 84000 Budgeted Cash Sales 65% 54600 Budgeted Credit Sales 35% 29400 Collected In April Half of 29400 14700 Cash Receipt Collected In May Half of 29400 14700 Accounts Receivable Balance Sheet Ending Inventory: Purchase 46300 add: Beginning Inventory 29200 Less:Budgeted Sale 84000*55% 46200 Ending Inventory 29300 Cash Budget: Beginning Balance 40400 Cash Inflows: Cash Sales 54600 Collection (14700+29400) 44100 Cash Outflows: Payment for March Liabilities -17000 Cash Purchase -10000 Payment for April -18150 Purchase of Equipment -42400 Operating Expense 13200*30% -3960 Ending Balance 47590 Owner's Equity Balance: Beginning Balance 92700 Add: Net Income 23700 Ending Balance 116400 Sale 84000 Less: COGS 55% 46200 Gross Margin 37800 Less: Operating Expense Depreciation 900 Other Operating Expense 13200 Net Income 23700 Budgeted Balance Sheet: Cash 47590 Accounts Receivable 14700 Inventory 29300 Equipment 52100+42400 94500 Less: Acc Dep 41400+900 -42300 52200 Total Assets 143790 Accounts Payable 18150 Accrued Expense 13200*70% 9240 Owner's Equity 116400 Total Liabilities and Owner's Eq 143790 3. Beginning Balance 40400 Cash Inflows: Cash Sales 54600 Collection (14700+29400) 44100 Cash Outflows: Payment for March Liabilities -17000 Cash Purchase -10000 Payment for April -18150 Operating Expense 13200*30% -3960 Ending Balance 89990 Minimum Cash Balance 17000 Hence Cash Available 72990 4.a Impact on Budgeted Sales 56000 Budgeted Cash Sales 65% 36400 Budgeted Credit Sales 35% 19600 Collected In April Half of 29400 9800 Cash Receipt Collected In May Half of 29400 9800 Accounts Receivable Balance Sheet Ending Inventory: Purchase 46300 add: Beginning Inventory 29200 Less:Budgeted Sale 56000*55% 30800 Ending Inventory 44700 Cash Budget: Beginning Balance 40400 Cash Inflows: Cash Sales 36400 Collection (9800+29400) 39200 Cash Outflows: Payment for March Liabilities -17000 Cash Purchase -10000 Payment for April -18150 Purchase of Equipment -42400 Operating Expense 13200*30% -3960 Ending Balance 24490 Owner's Equity Balance: Beginning Balance 92700 Add: Net Income 11100 Ending Balance 103800 Sale 56000 Less: COGS 55% 30800 Gross Margin 25200 Less: Operating Expense Depreciation 900 Other Operating Expense 13200 Net Income 11100 Budgeted Balance Sheet: Cash 24490 Accounts Receivable 9800 Inventory 44700 Equipment 52100+42400 94500 Less: Acc Dep 41400+900 -42300 52200 Total Assets 131190 Accounts Payable 18150 Accrued Expense 13200*70% 9240 Owner's Equity 103800 131190 4b. No Since ending balance balance is more than 18000 Ending Balance 24490

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