https://file.aiquickdraw.com/mathbot/file/1730166941477ch77rh52.jpg

From the information presented in the screenshot, we are tasked with calculating the inventory balance using a budgeted balance sheet.

### Step-by-step calculation of the inventory balance:

1. **Beginning Inventory Balance (as of March 31):**
   - The March 31 inventory balance is provided in the information box as **$29,200**.

2. **Inventory Purchases (for April):**
   - April purchases of inventory total **$47,100**. This consists of **$10,900** cash purchases and **$36,200** on credit (as stated in item **l** in the information box).
   - However, only half of the credit purchases will be paid in April, meaning **$18,100** will be considered for the April cash outflows, and the remaining half in May.

3. **Cost of Goods Sold (COGS):**
   - The cost of goods sold is given as **55% of sales**.
   - The cash sales for April are **$42,000**, so COGS will be:
     \[
     \text{COGS} = 0.55 \times 42,000 = 23,100
     \]

4. **Ending Inventory Balance:**
   Using the formula for calculating the ending inventory balance:
   \[
   \text{Ending Inventory Balance} = \text{Beginning Inventory} + \text{Purchases} - \text{COGS}
   \]
   Substituting the values:
   \[
   \text{Ending Inventory Balance} = 29,200 + 47,100 - 23,100 = 53,200
   \]

So, the **ending inventory balance** is **$53,200**.

Let me know if you'd like further details on any step or have any questions!

### Here are 5 questions to expand this:

1. How would changes in sales percentages affect the cost of goods sold (COGS)?
2. What impact does delaying credit payments have on a company's cash flow?
3. How is depreciation accounted for in the balance sheet?
4. What would the ending balance be if there were no cash purchases?
5. How do inventory levels affect a company's working capital?

**Tip:** Always ensure you account for partial payments when dealing with credit purchases over multiple periods.

Calculate the inventory balance for Box Medical Supply, using given information on cash inflows, outflows, and additional budgetary details.

Learn how to calculate the ending inventory balance for Box Medical Supply using cash flow and inventory data. This includes computing cash inflows, outflows, and applying the COGS percentage based on sales. Suitable for college-level accounting and finance students.

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