72, ose $ 46,000 Totalities soldesty 24 The company is in the process of preparing a budget for May and has assembled the following data Sales se budgeted at $296.000 for May. Of these sales. $88,800 will be for cash the remainder will be credits One halota 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 $192,000 during May. These purchases will all be on account. Forty percent of a purchases are paid for in the month of purchase, the remainder are paid in the following month All of the Apel 30 accounts payable to suppliers will be paid during May The May 31 inventory balance is budgeted at $51.500 d Setting and administrative expenses for Moy are budgeted at $98.700, exclusive of depreciation. These expenses will be paid cash. Depreciation is budgeted at $2,150 for the month e. The note payable on the April 30 balance sheet will be paid during May, with $220 in interest. (All of the interest relates to May) New retrigerating equipment costing $6,800 will be purchased for cash during May During May, the company will borrow $23.200 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: 10. Prepare a schedule of expected cash collections from sales and a schedule of expected cash disbursements for merchandise purchases Required: 1a Prepare a schedule of expected cash collections from sales and a schedule of expected cash ontursements for merchandise purchases 24 Schedule of Expected Cash Collections Cash sales May Collections on account recevable Apr 30 balance May sales Total cash receipts Schedule of Expected Cash Disbursements April 30 accounts payable balance May purchases Total cash payments 24 1. Prepare a cash budget for May. (Cash deficiency, repayments and interest should be indicated by a minus sign 20 Minden Company Cash Budget For the Month of May Beginning cash balance Add collections from customers Total cash avatte Les cash disbursements Purchase of inventory Seling and administrative expenses Purchases of equipment Tot cash disbursements Excess of cash avastable over disbursements Financing Borowing note Repaymentsnote 24 15 0247a Minden Company Cash Budget For the Month of May Beginning cash balance Add collections 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 Borrowing---note Repayments-note Interest Total financing Ending cash balance 2. Prepare a budgeted income statement for May Minden Company Budgeted Income Statement For the Month of May Cost of goods sold 3. Prepare a budgeted balance sheet as of May 31 1 Minden Company Budgeted Balance Sheet May 31 Assets Total assets Labilities and Shareholders' Equity 7 Minden Company Budgeted Balance Sheet May 31 Assets Total assets Liabilities and Shareholders' Equity Total liabilities and shareholders' equity