Assets Cash Accounts receivable Inventory Minden Company Balance Sheet April 20 $9,400 78,500 44000 Total assets Accounts payable Note payable Common stock Betained earnings Total liabilities and stockholders' equity Buildings and equipment, net of depreciation Liabilities and Stockholders' Equity 221,000 #352,900 $72,000 19,700 190,000 1,200 $352,900 The company is in the process of preparing a budget for May and has assembled the following data: a. Sales are budgeted at $256,000 for May. Of these sales, $76,800 will be for cash; 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 $188,000 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 $83,000 d. Selling and administrative expenses for May are budgeted at $91,500, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $4,000 for the month. e. The note payable on the April 30 balance sheet will be paid during May, with $435 in interest. (All of the interest relates to May) f. New refrigerating equipment costing $7,000 will be purchased for cash during May g. During May, the company will borrow $23,100 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: 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. Req 1 and 2 Req 3 Req 4 Prepare a budgeted income statement for May Minden Company Budgeted Income Statement For the Month of May Beginning inventory Gross margin Net operating income Net income 0000000 44,000 00 O 44.000 44.000 44.000 a. Sales are budgeted at $256,000 for May. Of these sales, $76,800 will be for 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 $188,000 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 $83,000. d. Selling and administrative expenses for May are budgeted at $91,500, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $4,000 for the month. e. The note payable on the April 30 balance sheet will be paid during May, with $435 in interest. (All of the interest relates to May) f. New refrigerating equipment costing $7,000 will be purchased for cash during May 9. During May, the company will borrow $23,100 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: 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. Req 1 and 2 Req3 Req Req 5 Prepare a budgeted balance sheet as of May 31. Minden Company Budgeted Balance Sheet May 31 1 Cash Assets Accounts receivable Buildings and equipment, net of depreciation 0000 11,565 89,600 O 83,000 224,000 Total assets $ 408,165 Liabilities and Stockholders' Equity Accounts payable 0000 112.800 23,100 O 180,000 92.265 Total liabilities and stockholders' equity $ 408,165