Minden Company is a wholesale distributor of premium European chocolates. The company's balance sheet at 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 $231,000 for May Of these sales, $69,300 will be for cash the remainder will be credit sales, One-hail 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 $139,000 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. Al of the Aprit 30 accounts payable to suppliers will be paid during May c. The May 31 inventory balance is budgeted at $55.000 d Selling and administrative expenses for May are budgeted at $83,400, exclusive of depreciation These expenses wili be paid in cash. Depreciation is budgeted at $6,200 for the month e. The note payable on the April 30 balance sheet will be paid during May. with $155 in interest. (All of the interest relates to May) f. New refngerating equipment costing $12.500 will be purchased for cash during May 9. During May, the company will borrow $24,000 from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year. d. Selling and administrative expenses for May are budgeted at $83.400. exclusive of depreciation. cash. Depreciation is budgeted at $6,200 for the month e. The note payable on the April 30 balance sheet will be paid during May, with $155 in interest. (All f. New refrigerating equipment costing $12.500 will be purchased for cash during May. g. During May, the company will borrow $24,000 from its bank by giving a new note payable to the b 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. 1. Calculate the expected cash collections from customers for May. 2. Calculate the expected cash disbursements for merchandise purchases for May. Prepare a cash budget for May. (Cash deficiency, repayments and interest should be indicated 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 Prepare a budgeted income statement for May. Complete this question by entering your answers in the tabs below. Prepare a budgeted balance sheet as of May 31
