4 25 points Minden Company is a wholesale distributor of premium European chocolates. The company's balance sheet as of April 30 is given below Minder Company Balance Sheet April je Assets Cash $ 15,00 Accounts receivable 70,200 Inventory 38.750 Buildings and equipment, net of depreciation 222.000 Total assets $346,750 Llabilities and stockholders' Equity Accounts payable $ 74,750 Note payable 14,700 Common stock 180,000 Retained earnings 27730 Tatal labtiities and stockholders' equity $ 146,75 The company is in the process of preparing a budget for May and has assembled the following data: 8 00:00 a. Sales are budgeted at $260,000 for May of these sales 578,000 will be for case the remainder will be credit sales. One half of a month's 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 b. Purchases of inventory are expected to total $155.000 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 c. The May 31 inventory balance is budgeted at $59,500 d. Selling and administrative expenses for May ate budgeted at $99.500, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $4.550 for the month The nate payable on the April 30 balance sheet will be paid during May, with 5450 in interest (All of the interest relates to Mary'). New refrigerating equipment costing 511000 will be purchased for cash during May 9 During May, the company will borrow $21.500 from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year Quiz Tools 100% es Collapse Prey 44 ## Next 4. 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 ci The May 31 inventory balance is budgeted at $59.500. d. Selling and administrative expenses for May are budgeted at $99,500, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $4,550 for the month e. The note payable on the April 30 balance sheet will be paid during May, with $460 in interest. (All of the Interest relates to May) 1. New refrigerating equipment costing $11,000 will be purchased for cash during May g. During May, the company will borrow $21.500 from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year 25 points 800.000 Required: 1. Calculate the expected cash collections from customers for May 2. Calculate the expected cash disbursements for merchandise purchases for May 3. Prepare a cash budget for May. 4. Prepare a budgeted income statement for May. 5. Prepare a budgeted balance sheet as of May 31, Complete this question by entering your answers in the tabs below. T Req 1 and 2 Req) Beg 4 Reqs 1. Calculate the expected cash collections from customers for May 2. Calculate the expected cash disbursements for merchandise purchases for Max Total cash collections Totalcathibunaments Req3 > lo Quiz Tools 100% 0 Minden Company Cash Budget For the Month of May Beginning cash balance Add collection from customers Total cash available Less cash disbursements: Purchase of inventory Selling and administrative expenses Purchases of equipment Total cash disbursements Excess of cash available over disbursements Financing Borrowingnote Repayments-note Interest Total financing Ending cash balance 0 0 0 $ 0 Prepare a budgeted income statement for May. Minden Company Budgeted Income Statement For the Month of May Required 5: Prepare a budgeted balance sheet as of May 31. Minden Company Budgeted Balance Sheet May 31 Assets 0 Total assets Liabilities and Stockholders' Equity Total liabilities and stockholders' equity $ 0