1. Minden Company is a wholesale distributor of premium European chocolates. The companys balance sheet as of April 30 is given below:

Minden Company

Balance Sheet

April 30

Assets
Cash	$9,000
Accounts Receivable	54,000
Inventory	30,000
Buildings & Equipment, net of depreication	207,000
Total assets	300,000
Liabilities and Stockholders Equity
Accounts Payable	$63,000
Notes Payable	14,5000
Common Stock	180,000
Retained Earnings	42,500
Total Liabilities and Stockholders Equity	30,000

The company is in the process of preparing a budget for May and has assembled the following data: Sales are budgeted at $200,000 for May. Of these sales, $60,000 will be for cash; the remainder will be credit sales. One-half of a months credit sales are collected in the month the sales are made, and the remainder is collected in the following month. All of the April 30 accounts receivable will be collected in May. Purchases of inventory are expected to total $120,000 during May. These purchases will all be on account. Forty percent of all purchases are paid for in the month of purchase; the remainder are paid in the following month. All of the April 30 accounts payable to suppliers will be paid during May. The May 31 inventory balance is budgeted at $40,000. Selling and administrative expenses for May are budgeted at $72,000, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $2,000 for the month. The note payable on the April 30 balance sheet will be paid during May, with $100 in interest. (All of the interest relates to May.) New refrigerating equipment costing $6,500 will be purchased for cash during May. During May, the company will borrow $20,000 from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year.

Required:

a. Calculate the expected cash collections from customers for May.

b. Calculate the expected cash disbursements for merchandise purchases for May.

c. Prepare a cash budget for May.

d. Prepare a budgeted income statement for May.

e. Prepare a budgeted balance sheet as of May 31.

2. The Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:

	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter
Units to be produced	12,000	10,000	13,000	14,000

Each unit requires 0.2 direct labor-hours and direct laborers are paid $12.00 per hour. In addition, the variable manufacturing overhead rate is $1.75 per direct labor-hour. The fixed manufacturing overhead is $86,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $23,000 per quarter. Required:

b. Calculate the companys total estimated direct labor cost for each quarter of the upcoming fiscal year and for the year as a whole.

a. & c. Calculate the companys total estimated manufacturing overhead cost and the cash disbursements for manufacturing overhead for each quarter of the upcoming fiscal year and for the year as a whole.