Assignment
Hugo Medical Supply has applied for a loan. Pacific Commerce Bank has requested a budgeted balance sheet as of April 30 and a combined cash budget for April. As Hugo Medical Supply's controller, you have assembled the following information:
i. March 31 equipment balance, $52,600; accumulated depreciation, $41,300
ii. April capital expenditures of $42,400 budgeted for cash purchase of equipment
iii. April depreciation expense, $700
iv. Cost of goods sold, 60% of sales
v. Other April operating expenses, including income tax, total $14,200, 35% of which will be paid in cash and the remainder accrued at April 30
vi. March 31 owners' equity, $92,600
vii. March 31 cash balance, $40,300
viii. April budgeted sales, $90,000, 70% of which is for cash. Of the remaining 30%, half will be collected in April and half in May.
ix. April cash collections on March sales, $29,100
x. April cash payments of March 31 liabilities incurred for March purchases of inventory, $17,300
xi. March 31 inventory balance, $29,200
xii. April purchases of inventory, $10,700 for cash and $36,300 on credit. Half of the credit purchases will be paid in April and half in May.
Requirements
i. Prepare the budgeted balance sheet for Hugo Medical Supply at April 30. Show separate computations for cash, inventory, and owners' equity balances.
ii. Prepare the combined cash budget for April.
iii. Suppose Hugo 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 $14,000? (For this requirement, disregard the $42,400 initially budgeted for equipment purchases.)
Format your assignment according to the following formatting requirements:
i) The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
ii) The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
iii) Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.