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

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Minden Company is a wholesale distributor of premium European chocolates. The company's balance sheet as of April 30 is given below: Minden Company Dalance Sheet April 30 Assets Cash Accounts receivable Inventory Buildings and equipment, net of depreciation Total assets Llabilities and Stockholders' Equity Accounts payable Note payable Common stock Retained carniaga Total liabilities and stockholders' equity 10,500 50, 500 40,750 202.000 5.319,750 $ 67.750 15.800 180,000 56,200 5 319,750 The company is in the process of preparing a budget for May and has assembled the following data: al Sales are budgeted at $263,000 for May of these sales, 578,900 will be for cash; the remainder will be credit salos One-half of a month's credit sales are collected in the month the solos 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 5193,000 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 $63.000 d. Soting and administrative exponses for May are budgeted at $73,200, exclusive of depreciation. These expenses wil bo paldin cash Depreciation is budgeted at $4,650 for the month e. The note payable on the April 30 balance sheet will be paid during May, with $210 in Interest (All of the Interest relates to May.) 1. New refrigerating equipment costing $11,900 will be purchased for cash during May g. During May, the company will borrow $27.200 from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year 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

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