ercises Problems Minden Company is a wholesale distributor utor of premium European chocolates. The company's balance sheet as of April 30 is given chocolates. The Minden Company Balance Sheet April 30 10, 300 70,000 43,000 Accounts receivable Inventory Baildings and equipeent, net of depreciation Total assets 350,300 Liabiiities and Stockholders Equity Accounts payable Note payable $86,000 180,000 61,300 Retained earnings Total 1iabilities and stockholders equity 350,300 The company is in the process of preparing a budget for May and has assembled the following data: a Sales are budgeted at $276,000 for May. Of these sales, $82,800 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 $147,000 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 $43,000 d. Selling and administrative expenses for May are budgeted at $97,500, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $3,200 for the month. e. The note payable on the April 30 balance sheet will be paid during May, with $235 in interest. (All of the interest relates to May) f. New refrigerating equipment costing $12,100 will be purchased for cash during May g. During May, the company will borrow $29,200 from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year 11 4 pter 8 Exercises/Problems Saved t. New retrigerating equipment costing $12,100 will be purchased for cash during May g. During May, the company will borrow $29,200 from its bank by giving a new note payable to the bar note will be due in one year Required: 1. Calculate the expected cash collections 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 eBook Complete this question by entering your answers in the tabs below. Print Req 1 and 2 Req 3 Req 4 Req 5 ferences 1. Calculate the expected cash collections for May 2. Calculate the expected cash disbursements for merchandise purchases for May Total cash collections Total cash disbursements Req 3 ) 4 Req 1 and 2 Req 3 Req 4 Req 5 Prepare a cash budget for May. (Cash deficiency, repayments and interest should be indicated b 20 oints Minden Company Cash Budget For the Month of May eBook Beginning cash balance Add collection from customers Total cash available Less cash disbursements: Print Purchase of inventory Selling and administrative expenses Purchases of equipment References Total cash disbursements Excess of cash available over disbursements Financing Repayments-note Interest Total financing Ending cash balance Req 1 and 2 Req 4 > KPrev 4 of 5 4 Complete this question by entering your answers in the tabs below 20 points Req 1 and 2 Req 3 Req 4 Req 5 Prepare a budgeted income statement for May. Minden Company Budgeted Income Statement For the Month of May eBook Print References Req 3 Req 5 > Mc Graw Hill K Prev 4 Req 5 Req 1 and 2 Req 3 Req 4 Prepare a budgeted balance sheet as of May 31. 20 points Minden Company Budgeted Balance Sheet May 31 Assets eBook Print References Total assets Liabilities and Stockholders' Equity Total liabilities and stockholders' equity Req 4 KPrev 4o
