Minden Company is a wholesale distributor of premium European chocolates The company's balance sheet as of April 30 is given below Minden Company Balance Sheet April 30 Assets Cash $10,000 Accounts receivable 62,750 Inventory 32,750 Buildings and equipment, net of depreciation 219,000 Total assets $324,500 Liabilities and Stockholders' Equity Accounts payable $69,000 Note payable 22,700 Common stock 180,000 Retained earnings 52,800 Total liabilities and stockholders' equity $324,500 The company is in the process of preparing a budget for May and has assembled the following data Sales are budgeted at $254,000 for May Of these sales, $76,200 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 Purchases of inventory are expected to total $137,000 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 $45,000 Selling and administrative expenses for May are budgeted at $98,400, exclusive of depreciation These expenses will be paid in cash Depreciation is budgeted at $5,550 for the month The note payable on the April 30 balance sheet will be paid during May, with $350 in interest (All of the interest relates to May ) New refrigerating equipment costing $8,700 will be purchased for cash during May During May, the company will borrow $27,400 from its bank by giving a new note payable to the bank for that amount The new note will be due in one year 1 Help calculate the expected cash collections from customers for May 2 Help calculate the expected cash disbursements for merchandise purchases for May 3 Help prepare cash budget for May 4 Help prepare budgeted income statement for May 5 Help prepare budgeted balance sheet as of May 31

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 28, 2024

Minden Company is a wholesale distributor of premium European chocolates. The company's balance sheet as of April 30 is given below:

Minden Company

Balance Sheet

April 30

Assets

Cash $10,000

Accounts receivable 62,750

Inventory 32,750

Buildings and equipment, net of depreciation 219,000

--------------------

Total assets $324,500

Liabilities and Stockholders' Equity

Accounts payable $69,000

Note payable 22,700

Common stock 180,000

Retained earnings 52,800

---------------------------

Total liabilities and stockholders' equity $324,500

The company is in the process of preparing a budget for May and has assembled the following data:

Sales are budgeted at $254,000 for May. Of these sales, $76,200 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.
Purchases of inventory are expected to total $137,000 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 $45,000.
Selling and administrative expenses for May are budgeted at $98,400, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $5,550 for the month.
The note payable on the April 30 balance sheet will be paid during May, with $350 in interest. (All of the interest relates to May.)
New refrigerating equipment costing $8,700 will be purchased for cash during May.
During May, the company will borrow $27,400 from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year.

1. Help calculate the expected cash collections from customers for May.

2. Help calculate the expected cash disbursements for merchandise purchases for May.

3. Help prepare cash budget for May.

4. Help prepare budgeted income statement for May.

5. Help prepare budgeted balance sheet as of May 31.