\begin{tabular}{|c|c|} \hline \multicolumn{2}{|c|}{ Minden Company } \\ \hline Budgeted Income Statement \\ \hline For the Month of May \\ \hline & \\ \hline & \\ \hline & \\ \hline \end{tabular} \begin{tabular}{|c|c|} \hline \multicolumn{2}{|c|}{ Minden Company } \\ \hline Budgeted Balance Sheet \\ \hline May 31 \\ \hline \\ \hline \\ \hline \end{tabular} 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. 1. Calculate the expected cash collections from customers for May. 2. Calculate the expected cash disbursements for merchandise purchases for May. \begin{tabular}{|l|} \hline \multicolumn{2}{|c|}{ Minden Company } \\ \hline \multicolumn{2}{|c|}{ Cash Budget } \\ \hline Beginning cash balance Month of May \\ \hline Add collections from customers \\ \hline Total cash available \\ \hline Less cash disbursements: \\ \hline Purchase of inventory \\ \hline Selling and administrative expenses \\ \hline Purchases of equipment \\ \hline Total cash disbursements \\ \hline Excess of cash available over disbursements \\ \hline Financing: \\ \hline Borrowing - note \\ \hline Repayments-note \\ \hline Interest \\ \hline Total financing \\ \hline Ending cash balance \\ \hline \end{tabular} Minden Company is a wholesale distributor of premium European chocolates. The companys balance sheet as of April 30 is given below: The company is in the process of preparing a budget for May and has assembled the following data a. Sales are budgeted at $266,000 for May, Of these sales, $79,800 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 recelvable will be collected in May. b. Purchases of inventory are expected to total $170,000 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 $44,500 d. Selling and administrative expenses for May are budgeted at $81,900, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $6,450 for the month. e. The note payable on the April 30 balance sheet will be paid during Moy, with $140 in interest. (All of the interest relates to May) f. New refrigerating equipment costing $9,600 will be purchased for cash during May 9. During May, the company will borrow $23,400 from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year
