Assets Cash Modern Company Balance Sheet April 30 $18.500 Accounts receivable 58,500 Inventory 40,750 Buildings and equipment, net of depreciation 202,000 Total assets $319,750 Liabilities and Stockholders Equity Accounts payable $67,750 Note payable $15.800 Common stock 180.000 Retained earnings 56,200 Total liabilities and stockholders' equity $319,750 H Assessinant security Septodown rewar Grading Maximum pes Additional Information Refresh the meter upda you subent an ampt Last saved 2:51:03 PM Tremaining Retained earnings Total abilities and stockholders equity 56.200 $319.750 40F5 QUESTIONS MANING The company is in the process of preparing a budget for May and has assembled the following data Sales are budgeted at $263,000 for May. Of these sales, $78.500 will be for cash the remainder will be credt sales. One half it's 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 Purchases of inventory are expected to total $193,000 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 $63,000. Selling and administrative expenses for May are budgeted at $73,200, exclusive of depreciation. These expenses will be paid in cash Depreciation is budgeted at $4,650 for the month. The note payable on the April 30 balance sheet will be paid during May, with $300 in interest. (All of the interest relates to May) New refrigerating equipment costing $11,900 will be purchased for cash during May. During May, the company will borrow $27,200 from its bank by giving a new note payable to the bank for that amount. The new note will be du in one year. Required: Using the information provided, prepare the following: for May 12 marks! Last saved 2:51:0 month's credit sales are collected in the month the sales are made, and the remainder is collected in the following month of the for May. Of these sales, $78.900 will be for cash, the remainder will be our sales One half of a April 30 accounts receivable will be collected in May Purchases of inventory are expected to total $193,000 during May. These purchases will all be on account. Forty percent of at purchases are paid for in the month of purchase; the remainder are paid in the following month. All of the April 30 accounts paya to suppliers will be paid during May The May 31 inventory balance is budgeted at $63.000. Selling and administrative expenses for May are budgeted at $73,200, exclusive of deprecation. These expenses will be paid in cash Depreciation is budgeted at $4,650 for the month. The note payable on the April 30 balance sheet will be paid during May, with $300 in interest. (All of the interest relates to May? New refrigerating equipment costing $11,900 will be purchased for cash during May During May, the company will borrow $27.200 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: Using the information provided, prepare the following 1. The budgeted expected cash collections from customers for May. [2 marks] 2. The budgeted expected cash disbursements for merchandise purchases for May. [1 mark) 3. The cash budgeted for May. [5 marks] Last saved 2:51:03 PM Pradous Next Last