亨格瑞管理会计英文第15版练习答案07 CHAPTER 7COVERAGE OF LEARNING OBJECTIVESCRITICAL CASES,FUNDA- THINKING EXCEL,MENTAL EXERCISES COLLAB. &ASSIGNMENT AND INTERNET LEARNING OBJECTIVE MATERIAL EXERCISES PROBLEMS EXERCISES LO1: Explain how budgets A1,B1 facilitate planning andcoordination.LO2: Anticipate possible 25 40 human relations problemscaused by budgets.LO3: Explain potentially 22 39, 40 dysfunctional incentives inthe budget process.LO4: Explain the difficulties 23 42 49 of sales forecasting.LO5: Explain the major A1,B1 24,26 39 features and advantages of a master budget.LO6: Follow the principal A1,B1 29 40 43,45 steps in preparing a masterbudget.LO7: Prepare the operating A1,B1 28,29,30,31 40 43,45,46,48 budget and the supportingschedules.LO8: Prepare the financial A1,B1 27,29,32,33, 36,37,38 43,44,47,48 budget. 34,35LO9: Use a spreadsheet to 41,42 develop a budget (Appendix7).Copyright ?2011 Pearson Education, Inc., Publishing as Prentice Hall. 272CHAPTER 7Introduction to Budgets and Preparing the Master Budget7-A1 (60-90 min.)1. Exhibit IRAPIDBUY ELECTRONICS, INC.Mall of America StoreBudgeted Income StatementFor the Three Months Ending August 31, 20X8Sales $300,000Cost of goods sold (.62 × $300,000) 186,000 Gross profit $114,000 Operating expenses:Salaries, wages, commissions $60,000Other expenses 12,000Depreciation 1,500Rent, taxes and other fixed expenses 33,000 106,500 Income from operations. $ 7,500 Interest expense* 1,338 Net income $ 6,162 * See schedule g for calculation of interest.Copyright ?2011 Pearson Education, Inc., Publishing as Prentice Hall. 273Exhibit IIRAPIDBUY ELECTRONICS, INC.Mall of America StoreCash BudgetFor the Three Months Ending August 31, 20X8June July AugustBeginning cash balance $ 5,800 $ 5,600 $ 5,079Minimum cash balance desired 5,000 5,000 5,000(a) Available cash balance $ 800 $ 600 $ 79Cash receipts & disbursements:Collections from customers(schedule b) $ 75,200 $121,400 $ 90,800Payments for merchandise(schedule d) (86,800) (49,600) (49,600)Fixtures (purchased in May) (11,000) - -Payments for operatingexpenses (schedule f) (44,600) (30,200) (30,200)(b) Net cash receipts & disbursements $(67,200) $ 41,600 $ 11,000Excess (deficiency) of cash beforefinancing (a + b) (66,400) 42,200 11,079Financing:Borrowing, at beginning of period $ 67,000 $ - $ -Repayment, at end of period - (41,000) (10,000) Interest, 10% per annum - (1,121)* (217)* (c) Total cash increase (decrease) from financing $ 67,000 $(42,121) $(10,217) (d) Ending cash balance (beginningbalance + b + c) $ 5,600 $ 5,079 $ 5,862* See schedule gCopyright ?2011 Pearson Education, Inc., Publishing as Prentice Hall. 274Exhibit IIIRAPIDBUY ELECTRONICS, INC.Mall of America StoreBudgeted Balance SheetAugust 31, 20X8Assets Liabilities and Owners’ EquityCash (Exhibit II) $ 5,862 Accounts payable $ 37,200Accounts receivable* 86,400 Notes payable 16,000** Merchandise inventory 37,200 Total current liabilities $ 53,200Total current assets $129,462Net fixed assets: Owners' equity:$33,600 less $102,200 plus netdepreciation of $1,500 32,100 income of $6,162 108,362 Total assets $161,562 Total equities $161,562*July sales, 20% × 90% × $80,000 $ 14,400Aug ust sales, 100% × 90% × $80,000 72,000Accounts receivable $86,400** See schedule gJune July August Total Schedule a: Sales BudgetCredit sales (90%) $126,000 $72,000 $72,000 $270,000Cash sales (10%) 14,000 8,000 8,000 30,000Total sales (to Exhibit I) $140,000 $80,000 $80,000 $300,000Schedule b: Cash CollectionsJune July AugustCash sales $ 14,000 $ 8,000 $ 8,000On accounts receivable from:April sales 10,800 - -May sales 50,400 12,600 -June sales - 100,800 25,200July sales - - 57,600Total collections (to Exhibit II) $75,200 $121,400 $90,800Schedule c: Purchases Budget May June July AugustDesired purchases:62% × next month's sales $86,800 $49,600 $49,600 $37,200Schedule d: Disbursements for Purchases June July AugustCopyright ?2011 Pearson Education, Inc., Publishing as Prentice Hall. 275Last month's purchases (to Exhibit II) $86,800 $49,600 $49,600Other required items related to purchasesAccounts payable, August 31, 2008(62% × September sales - to Exhibit III) $37,200Cost of goods sold (to Exhibit I) $86,800 $49,600 $49,600 Schedule e: Operating Expense BudgetJune July August TotalSalaries, wages, commissions $28,000 $16,000 $16,000 $60,000 Other Variable expenses 5,600 3,200 3,200 12,000Fixed expenses 11,000 11,000 11,000 33,000Depreciation 500 500 500 1,500Total operating expenses $45,100 $30,700 $30,700 $106,500 Schedule f: Payments for Operating ExpensesJune July AugustVariable expenses $33,600 $19,200 $19,200Fixed expenses 11,000 11,000 11,000Total payments for operating expenses $44,600 $30,200 $30,200 Schedule g: Interest calculationsJune July AugustBeginning balance $67,000 $67,558 $26,000Monthly interest expense @ 10% 558 563 217Ending balance before repayment $67,558 68,121 26,217 Principal repayment (fromstatement of receipts and disbursements) (41,000) (10,000) Interest payment (1,121) (217)Ending balance $26,000 $16,0002. This is an example of the classic short-term, self-liquidating loan. The need for such a loanoften arises because of the seasonal nature of a business. The basic source of cash isproceeds from sales to customers. In times of peak sales, there is a lag between the saleand the collection of the cash, yet the payroll and suppliers mustbe paid in cash right away.When the cash is collected, it in turn may be used to repay the loan. The amount of the loanand the timing of the repayment are heavily dependent on the credit terms that pertain toboth the purchasing and selling functions of the business.Copyright ?2011 Pearson Education, Inc., Publishing as Prentice Hall. 2767-B1 (60-120 min.) $ refers to Australian dollars.1. See Exhibits I, II, and III and supporting schedules a, b, c, d.2. The cash budget and balance sheet clearly show the benefits of moving to just-in-timepurchasing (though the transition would rarely be accomplished as easily as thisexample suggests). However, the company would be no better off if it left much of itscapital tied up in cash -- it has merely substituted one asset for another. At a minimum,the excess cash should be in an interest bearing account -- the interest earned orforgone is one of the costs of inventory.Schedule a: Sales Budget January February MarchTotal sales (100% on credit) $248,000 $280,000 $152,000Schedule b: Cash Collections60% of current month's sales $148,800 $168,000 $91,20030% of previous month's sales 30,000 74,400 84,00010% of second previous month's sales 10,000 10,000 24,800Total collections $188,800 $252,400 $200,000December January February MarchSchedule c: Purchases BudgetDesired ending inventory $156,200 $ 24,000* $ 24,000 $ 24,000Cost of goods sold 50,000 124,000 140,000 76,000Total needed $206,200 $148,000 $164,000 $100,000Beginning inventory 64,000 156,200 32,200 24,000Purchases $142,200 $ - $131,800 $ 76,000* Actual ending January (and beginning February) inventory level is $32,200, as inventorylevels are drawn down toward desired level of $24,000.Schedule d: Disbursements for Purchases100% of previous month's purchases $142,200 $ - $131,800March 31 accounts payable $76,000Copyright ?2011 Pearson Education, Inc., Publishing as Prentice Hall. 277Exhibit IWALLABY KITECash BudgetFor the Three Months Ending March 31, 20X2January February MarchCash balance, beginning $ 20,000 $ 20,400 $138,767Minimum cash balance desired 20,000 20,000 20,000(a) Available cash balance 0 400 118,767Cash receipts and disbursements:Collections from customers(Schedule b) 188,800 252,400 200,000Payments for merchandise(Schedule d) (142,200) - (131,800)Rent (32,200) (1,000) (1,000)Wages and salaries (60,000) (60,000) (60,000)Miscellaneous expenses (10,000) (10,000) (10,000)Dividends (6,000) -Purchase of fixtures - - (12,000)(b) Net cash receipts & disbursements $ (61,600) $181,400 $ (14,800)Excess (deficiency) of cashbefore financing (a + b) $ (61,600) $181,800 $103,967Financing:Borrowing, at beginning of period $ 62,000 $ - $ -Repayment, at end of period - (62,000)Simple interest, 10% monthly - (1,033)(c) Total cash increase (decrease)from financing $ 62,000 $ (63,033) $ -(d) Cash balance, end (beginningbalance + c + b) $ 20,400 $138,767 $123,967Copyright ?2011 Pearson Education, Inc., Publishing as Prentice Hall. 278Exhibit IIWALLABY KITEBudgeted Income StatementFor the Three Months Ending March 31, 20X2Sales (Schedule a) $680,000Cost of goods sold (Schedule c) 340,000 Gross margin $340,000Operating expenses:Rent* $ 67,000Wages and salaries 180,000Depreciation. 3,000Insurance 1,500Miscellaneous 30,000 281,500 Net income from operations $ 58,500 Interest expense 1,033 Net income $ 57,467 *(January-March sales less $40,000) × .10 plus 3 × $1,000Copyright ?2011 Pearson Education, Inc., Publishing as Prentice Hall. 279Exhibit IIIWALLABY KITEBudgeted Balance SheetMarch 31, 20X2AssetsCurrent assets:Cash (Exhibit I) $123,967Accounts receivable* 88,800Merchandise inventory (Schedule c) 24,000Unexpired insurance 4,500 $241,267Fixed assets, net: $50,000 + $12,000 - $3,000 59,000Total assets $300,267Liabilities and Stockholders' EquityLiabilities:Accounts payable (Schedule d) $76,000Rent payable. 64,000Dividends payable 6,000 $146,000Stockholders' equity** 154,267Total liabilities and stockholders' equity. $300,267 *February sales (.10 × $280,000) plus March sales (.40 × $152,000) = $88,800 **Balance, December 31, 20X1 $102,800Add: Net income 57,467Total $160,267Less: Dividends paid 6,000Balance, March 31, 20X2 $154,267Copyright ?2011 Pearson Education, Inc., Publishing as Prentice Hall. 2807-1 Budgeting 1) provides an opportunity for managers to reevaluate existing activities and evaluate possible new activities, 2) compels managers to think ahead by formalizing their responsibilities for planning, 3) aids managers in communicating objectives to units and coordinating actions across the organization, and 4) provides benchmarks to evaluate subsequent performance.7-2 Budgeting is primarily attention directing because it helps managers to focus on operating or financial problems early enough for effective planning or action.7-3 Strategic planning covers no specific time period, is quite general, and often is not built around financial statements. Long-range planning usually has a 5- or 10-year horizon and consists of financial statements without much detail. Budgeting usually has a horizon of one year or less, and consists of financial statements with much detail.7-4 Continuous budgets add a month (or quarter) in the future as the month (or quarter) just ended is dropped. Therefore, the continuous budget provides a continually updated budget looking twelve months ahead. When the new month (or quarter) is added, the budget for the remainderof the current year may also be revised. When companies revise thebudgets for the remainder of the current year, they usually compare subsequent results to the original budget (a fixed target) in addition to comparing them to the latest revised budget.7-5 If the measures used to reward employees in the performance evaluation system are not aligned with the goals of the company, the incentives from the evaluation system may lead employees to take actions that conflict with the interests of the company.7-6 Lower-level managers bias their forecasts to create budgetary slack or padding. Upper-level managers adjust for this bias in creating a revised budget. Therefore, lower-level managers introduce additional bias to compensate for the adjustment that will be made by upper-level managers, and upper-level managers introduce additional adjustments for the additional bias. This cycle can quickly destroy the potential benefits of budgets.7-7 A manager may make short-run decisions to increase profits that are not in th e company’s best long-run interests, such as offering customers excessively favorable credit terms or cutting discretionary expenditures such as R&D and advertising, trading future sales for current profits. In the extreme, the manager might choose to falsely report inflated profits.7-8 First, by moving this year's sales into next year or moving next year's expenses into this year, the manager ensures a higher level of reported profit (and probably a higher bonus) next year. Second, bydecreasing this year's income, the manager avoids ratcheting up of performance expectations in setting the bonus target for the next year.7-9 Budgeted performance is better than past performance as a basisfor judging current performance because the budget contains no hidden inefficiencies and can be founded on current rather than past economic conditions.Copyright ?2011 Pearson Education, Inc., Publishing as Prentice Hall. 2817-10 Budgets are especially important in environments that arerapidly changing. They force managers to look forward and plan for change. Budgets force analysis of the factors that are bringing aboutthe changes.7-11 No. When budgeting in done correctly, it is an important aid to managers. Managers need time to plan and coordinate their various activities. Budgeting forces them to take time from the day-to-day problems and focus on longer-term issues.7-12 The sales forecast is the starting point for budgeting becauseall other operating activities of the company are affected by the volume of sales.7-13 The sales forecast is influenced by past patterns of sales, estimates made by the sales force, general economic conditions, competitors' actions, changes in prices, market research studies, and advertising and sales promotion plans.7-14 An operating budget is used as a guide for production and sales and it focuses on the income statement. A financial budget is used to control the receipt and disbursement of funds and it focuses on the statement of cash receipts and disbursements.7-15 Operating expenses are costs charged to the income statement in a particular period. Some operating expenses may be associated with the sales of the period, and others may be costs of being in business forthe period. Disbursements for these operating expenses, that is, thecash payments for them, may come in a previous period (assets purchased in one period and depreciated over future periods) or a future period (wages accrued in a period but paid in the next period), as well as during the period.7-16 A cash budget is an attempt to monitor and regulate the flow of cash in optimum fashion.7-17 Budgeting will be effective only if it is accepted by those managers who are responsible for controlling costs. Since their performance will be measured against the budget, they must be educatedin the assumptions underlying the budget and convinced of itsobjectivity and relevance.Copyright ?2011 Pearson Education, Inc., Publishing as Prentice Hall. 2827-18 Both functional and activity-based master budgets begin withthe forecasted demand for products or services. However, whereas functional budgets then determine the inventory, materials, labor, andoverhead budgets, the activity-based budget focuses on determining the demand for key activities. This demand is measured by the cost-driver unit for each activity. Then the budgeted resource consumption rates are used to set the budgets for resources such as materials, labor, and overhead. The focus on activities and consumption rates in activity-based budgeting is what managers believe offers value from an operational control perspective.7-19 No. Financial planning models are mathematical statements ofthe relationships in the organization among all the operating and financial activities and of other major internal and external factors that may affect the financial results of decisions. But financial planning models are only as good as the assumptions and inputs used to build them. Managers must understand the models to provide appropriate assumptions and inputs. If managers do not understand budgeting, using financial planning models can result in GIGO (garbage in, garbage out).7-20 Setting up the master budget on a spreadsheet is time-consuming -- the first time. However, if it is done properly, with maximum flexibility, then the ease of subsequent use probably will more than offset that initial cost. Ultimately, though, the master budget system must meet the cost-benefit test. Improved budgeting systems are only worthwhile if they offer net benefits. Preparing and revising the master budget of a large company just would not be feasible without the aid of a computer.7-21 Spreadsheets can be used to make a mathematical model of an organization. It may take much effort to create the model, but once itis in place it can be used over and over again with minimal effort. Such a model is especially useful for sensitivity analysis, which is the asking of "what if" questions.7-22 Budgets that are used primarily for limiting spending provide incentives for “game playing.” Accura te forecasts and estimates give way to strategies designed to avoid budget cuts or to justify increased budgets. Budgets should have a much larger role in the effective and efficient management of an organization. A budget should be a decision tool. It helps managers project the results of their decisions, thereby aiding them in making the right decisions. It also provides a base for adapting to change. Anything that results in loss of budget accuracywill limit the decision usefulness of the budget.Copyright ?2011 Pearson Education, Inc., Publishing as Prentice Hall. 2837-23 Accurate sales forecasts are essential to budgeting. Sales personnel are often “closest to the action” and therefore in the best position to make accurate forecasts. They are in direct contact with customers, and often they are the first to notice trends. A centralstaff function, such as market research, can set parameters for forecasting and give some common ground rules. But usually it is important to get sales personnel heavily involved because they have information that no one else has. Most importantly, the more involvedsales personnel are, the more committed they will be to achieving budgeted sales goals.7-24 The planning that comes through a good budget process is important to all segments of an organization. Segments with both revenues and expenses can show a budgeted profit. Other segments that have only expenses, such as a research and development department, still have to plan their operations. It is important to predict the resources needed to meet the segment’s objectives so that required resources can be obtained. Budgeting provides a formal channel for communication between the segment and top management about what activities the segment is to undertake.7-25 A key to employee acceptance of a budget is participation. Budgets created with the active participation of all affected employees are generally more effective than budgets imposed on subordinates. If a budget is to help direct future activities, employees must accept the budget. Acceptance means believing that the budget reflects a desired future path for the organization. If a manager has been a participant in determining the future path – that is, helped develop the budget – he or she is more likely to accept it as a desirable objective.7-26 (5 min.)1. a. Capital budget2. Sales budget (or operating budget)b. Cash budget 3. Continuous (rolling)c. Budgeted balance sheet 4. Overall goals of the organization7-27 (10-15 min.)Music Masters will be using cash until the beginning of 2010, at which time cash receipts will begin to exceed cash disbursements. Therefore, the following amount of venture capital is needed to carrythe firm to the beginning of 2010:Initial capital investment $380,000First year cash outflow (12 × $35,000) 420,000Second year cash outflow [12 × ($35,000 - $30,000)] 60,000Total $860,000Copyright ?2011 Pearson Education, Inc., Publishing as Prentice Hall. 2847-28 (10-15 min.)1. Cost + (.25 × Cost) = Sales1.25 × Cost = $2,100,000Cost = $1,680,0002. Use the familiar identity, Beginning Inventory plus Purchases equals Cost ofGoods Sold plus Ending Inventory. To compute required purchases, compute theinventory needed (Cost of Goods Sold plus Ending Inventory) and then subtract theamount that will come from Beginning Inventory:July Merchandise PurchasesCost of goods sold ($2,200,000 , 1.25) $1,760,000Add: Target ending inventory.30 × ($2,360,000 , 1.25) 566,400Cost of goods needed $2,326,400Less: Beginning inventory.30 × ($2,200,000 , 1.25) 528,000Required Purchases $1,798,4007-29 (25-30 min.)1. July collections include:May sales billed June 5, .18 × .5 × $700,000 $ 63,000June sales billed June 20, .18 × .5 × $800,000 72,000June sales billed J uly 5, .80 × .5 × $800,000 × .97 310,400July sales billed July 20, .80 × .5 × $950,000 × .97 368,600Total $814,0002. .60 × .25 × $800,000 = $120,0003. Ending inventory, .60 × .25 × $950,000 $142,500Merchandise needed for current month's sales,.60 × $800,000 480,000Total needs 622,500Beginning inventory, .60 × .25 × $800,000 120,000Required Purchases $502,5004. July AugustEnding inventory, .60 × .25 × next month's sales $135,000 $ 90,000 Merchandise needed for current month's sales, .60 × sales 570,000 540,000Total needs 705,000 630,000Beginning inventory, .60 × .25 × current month's sales 142,500 135,000Required Purchases $562,500 $495,000Copyright ?2011 Pearson Education, Inc., Publishing as Prentice Hall. 285Payments, 1/2 of current purchases, 1/2 of precedingmonth's purchases, .5 × $562,500 + .5 × $495,000 $528,7507-30 (15 min.) This illustration is straightforward and follows the chapter example closely.All amounts are in dollars.June July AugustSales budgetCredit sales, 30% 129,000 132,000 150,000Cash sales, 70% 301,000 308,000 350,000Total sales, 100% 430,000 440,000 500,000Cash collections budgetCash sales this month 301,000 308,000 350,000 100% of last month's credit sales 105,000129,000 132,000Total collections 406,000 437,000 482,0007-31 (15-25 min.) This problem is slightly more complex than 7-30.All amounts are inthousands of Japanese yen.January February MarchSales budgetCredit sales, 80% 160,000 176,000 192,000Cash sales, 20% 40,000 44,000 48,000Total sales 200,000 220,000 240,000Cash collections budgetCash sales this month 40,000 44,000 48,00050% of this month's credit sales 80,000 88,000 96,00040% of last month's credit sales 62,400 64,000 70,40010% of next-to-last month's credit sales 18,000 15,600 16,000Total collections 200,400 211,600 230,4007-32 (10-15 min.)Collections from:January sales: $360,000 × 12% $ 43,200February sales: $400,000 × 10% × 99% 39,600February sales: $400,000 × 25% 100,000March sal es: $450,000 × 50% × 98% 220,500Total cash collections $403,300Copyright ?2011 Pearson Education, Inc., Publishing as Prentice Hall. 2867-33 (15-20 min.) This is straightforward and closely follows the illustration in the chapter.All amounts are in dollars. Some students need to be reminded that merchandise inventories arecarried at cost, not at selling prices.RENOVATION LIGHTING SUPPLYPurchases and Disbursements BudgetsJune July AugustPurchases budgetEnding inventory 220,000 200,000 240,000Cost of goods sold, 60% of sales 264,000 210,000 180,000Total needed 484,000 410,000 420,000Beginning inventory 275,000 220,000 200,000Purchases 209,000 190,000 220,000Disbursements for purchases10% of this month's purchases 20,900 19,000 22,00080% of last month's purchases 144,000* 167,200 152,00010% of second-last month'spurchases 25,000** 18,000 20,900189,900 204,200 194,900*.80 × 180,000 = 144,000**.10 × 250,000 = 25,000Copyright ?2011 Pearson Education, Inc., Publishing as Prentice Hall. 2877-34 (20-25 min.) This is straightforward and follows theillustration in the chapter closely,except for requirement 1. All amounts are in euros.1. 210,000 - [15,000 + .9 × (.6 × 300,000)] = 210,000 - [15,000+ .9(180,000)]= 210,000 - 177,000= 33,0002. LINKENHEIM GMBHPurchases and Disbursements BudgetsJune July AugustPurchases budgetEnding inventory* 171,600 198,600 231,000Cost of goods sold, 60% of sales 180,000 174,000 204,000Total needed 351,600 372,600 435,000Beginning inventory 210,000 171,600 198,600Purchases 141,600 201,000 236,400Disbursements for purchases80% of last month's purchases 120,000 113,280 160,80020% of this month's purchases 28,320 40,200 47,280Disbursements for purchases 148,320 153,480 208,080*Inventory targets, end of month:June: 15,000 + .9 × (0.6 × 290,000) = 15,000 + .9 × (174,000) = 171,600July: 15,000 + .9 × (0.6 × 340,000) = 15,000 + .9 × (204,000) = 198,600August: 15,000 + .9 × (0.6 × 400,000) = 15,000 + .9 × (240,000) = 231,000Copyright ?2011 Pearson Education, Inc., Publishing as Prentice Hall. 2887-35 (20 min.) This is a straightforward exercise.CARLSON COMPANYCash BudgetFor the Month Ended June 30, 20X4(in thousands)Beginning Cash, May 31, 20X4 $ 15 Cash Receipts:Collections from customers from:June sales (.80 × $290) $232May sales (.5 × 24)* 12April sales 20 264Total cash available during June $279 Cash Disbursements:On accounts payable of May 31 $145On June purchases, .25 × $192 48Wages 36Utilities 5Advertising 10Office expenses 4 248 Ending Cash, June 30, 20X4 $ 31*$24,000 = 20% of May sales, 10% of which or half the remainder will be collected inJune. All of April's remaining sales will be collected in June.Copyright ?2011 Pearson Education, Inc., Publishing as Prentice Hall. 2897-36 (20-25 min.) The collections from March sales are a bit tricky. Note that thereceivable balance from March sales at March 31 is $450,000; therefore, four fifths (because40/50 will be collected in April and 10/50 will be collected in May) will be received in April.MERRILL NEWS AND GIFTSBudgeted Statement of Cash Receipts and DisbursementsFor the Month Ending April 30, 20X7Cash balance, March 31, 20X7 $ 100,000Add receipts, collections from customers:From April sales, 1/2 × $1,000,000 $500,000From March sales, 4/5 × $450,000 360,000From February sales 80,000 940,000Total cash available $1,040,000Less disbursements:Merchandise purchases, $450,000 × 40% $180,000Payment on accounts payable 460,000Payrolls 90,000Insurance premium 1,500Other expenses 45,000Repayment of loan and interest 97,200 873,700Cash balance, April 30, 20X7 $ 166,300Copyright ?2011 Pearson Education, Inc., Publishing as Prentice Hall. 2907-37 (40-60 min.)。