Minden Company is a wholesale distributor of premium European chocolates. The company is in the process of preparing a budget for May and has assembled the following data: udgeted at $275,000 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. h. The company's cash balance as at April 30th is $18,500. Required: 1-a. Prepare a schedule of expected cash collections from sales and a schedule of expected cash disbursements for merchandise purchases... Schedule of Expected Cash Collections Cash sales-May Collections on account receivable: April 30 balance Mary sales Total cash receipts Saved Schedule of Expected Cash Disbursements April 30 accounts payable balance May purchases Total cash payments 08:36 1-b. Prepare a cash budget for May (Cash deficiency, repayments and interest should be indicated by a minus sig 0 Minden Company Cash Budget For the Month of May Beginning cash balance Add collections from customers Total cash available Less cash disbursements: Purchase of inventory Selling and administrative expenses Purchases of equipment Total cash disbursements Excess of cash available over disbursements Financing Borrowing-note Repayments-note Interest Total financing Ending cash balance / / / / 0 The balance sheet is missing for this question. I apologize for this error. You need the following info: Accounts Receivable from April Collected in May - $75,000 Accounts Payable from April paid in May - $70,000 Note Payable from April paid in May - $15,500 I will adjust marks accordingly if you do not receive this email
