00 seconds stion Completion Status Modern Company is a wholesale distributor of peopess chocines. The company's best Assets Balance Sheet April so Cash Accounts receivable Inventory MANO Buildings and equipment, net of depreciation Total assets 315756 200.000 Liabilities and Stockholders' Equity $328,000 Accounts payable Note payable Common stock $69.500 $16,000 Retained earnings 180.000 62.500 Total liabilities and stockholders' equity $325,000 The company is in the process of preparing a budget for May and has assembled the following des Sales are budgeted at $247,000 for May. Of these sales. $74,100 will be for cash; the remainder will be credit salm. Ose-half of a th's credit sales remainder is collected in the following month. All of the April 30 accounts receivable will be collected in May of puha, fe Purchases of inventory are expected to total $172,000 daring May. These purchases will all be on account. Forty pen of all purchases paid f following month. All of the April 30 accounts payable to suppliers will be paid during May The May 31 inventory balance is budgeted at $58,500. Selling and administrative expenses for May are budgeted at $87,600, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgmed at $6,850 The note payable on the April 30 balance sheet will be paid during May, with $400 in interest. (All of the interest alates to May.) New refrigerating equipment costing $13,400 will be purchased for cash during May During May, the company will borrow $22.900 from its bank by giving a new note payable to the bank for that amount. The new sone will be due in one year. Required: (8 marks] Using the information provided, prepare the following: 1. The budgeted expected cash collections from customers for May. [2 marks] 2. The budgeted expected cash disbursements for merchandise purchases for May 11 marks) 3. The cash budgeted for May. 15 marks] ped the 00 seconds stion Completion Status Modern Company is a wholesale distributor of peopess chocines. The company's best Assets Balance Sheet April so Cash Accounts receivable Inventory MANO Buildings and equipment, net of depreciation Total assets 315756 200.000 Liabilities and Stockholders' Equity $328,000 Accounts payable Note payable Common stock $69.500 $16,000 Retained earnings 180.000 62.500 Total liabilities and stockholders' equity $325,000 The company is in the process of preparing a budget for May and has assembled the following des Sales are budgeted at $247,000 for May. Of these sales. $74,100 will be for cash; the remainder will be credit salm. Ose-half of a th's credit sales remainder is collected in the following month. All of the April 30 accounts receivable will be collected in May of puha, fe Purchases of inventory are expected to total $172,000 daring May. These purchases will all be on account. Forty pen of all purchases paid f following month. All of the April 30 accounts payable to suppliers will be paid during May The May 31 inventory balance is budgeted at $58,500. Selling and administrative expenses for May are budgeted at $87,600, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgmed at $6,850 The note payable on the April 30 balance sheet will be paid during May, with $400 in interest. (All of the interest alates to May.) New refrigerating equipment costing $13,400 will be purchased for cash during May During May, the company will borrow $22.900 from its bank by giving a new note payable to the bank for that amount. The new sone will be due in one year. Required: (8 marks] Using the information provided, prepare the following: 1. The budgeted expected cash collections from customers for May. [2 marks] 2. The budgeted expected cash disbursements for merchandise purchases for May 11 marks) 3. The cash budgeted for May. 15 marks] ped the