acct 1020

Minden Company is a wholesale distributor of premlum European chocolates. The compary's balance sheet as of Aprit 30 is given below: The company is in the process of preparing a budget for May and has assembled the following data: 3. Sales are budgeted at $256,000 for May. Of these sales, $76.800 will be for cash the remainder will be credit sales. One-haif 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 recelvable will be collected in May. b. Purchases of Inventory are expected to total $188,000 durng Moy. These purchases will all be on account. Forcy percent of all purchases are pald for in the month of purchase; the remainder are padd in the following month. All of the Aprt 30 accounts paysable to suppliers will be pald during May. c. The May 31 inventory balance is budgeted at $83,000 d. Seling and administrative expenses for May are budgeted at $91,500, exclusive of clepreciation. These expenses will be paid in cash. Depreclation is budgeted at $4,000 for the month. e. The note payable on the April 30 balance sheet will be paid during Moy, wrth $435 in interest. (All of the interest rolates to May) f. New refrigerating equipment costing $7,000 will be purchased for cash during May. 9. During Moy, the company will borrow $23,100 from its bank by giving a new note poysable to the bank for that amount. The new note Wil be due in one year. Required: 1 Calculate the expected cash collections from customers for May. 2 Calculate the expected cash disbursements for merchandise purchases for Moy. 3. Prepare a cash budget for May. 4 Prepare a budgeted income statement for May. 5. Preoare a budoeted baiance sheet as of Mav 31