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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 Balance 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 Balance Sheet April 30 Assets Cash Accounts receivable Inventory Buildings and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Note payable Common stock Retained earnings Total liabilities and stockholders' equity 16,700 75,500 37,000 258,000 $ 387,200 es $ 86,750 15,700 180,000 104.750 The company is in the process of preparing a budget for May and has assembled the following data: Sales are budgeted at $240,000 for May. Of these sales, $72,000 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 $118,000 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 $31,500. d. Selling and administrative expenses for May are budgeted at $93,500, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $2.400 for the month. e. The note payable on the April 30 balance sheet will be paid during May, with $160 in interest. (All of the interest relates to May) 1 New refrigerating equipment costing $15,000 will be purchased for cash during May. Accounts payable Note payable Common stock Retained earnings Total liabilities and stockholders' equity DU 15,700 180,000 104,750 387,200 The company is in the process of preparing a budget for May and has assembled the following data: a Sales are budgeted at $240,000 for May. Of these sales, $72,000 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 $118,000 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 nce is budgeted at $31,500 c. The May 31 inventory balance is budgeted at $31,500. d. Selling and administrative expenses for May are budgeted at $93,500, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $2,400 for the month. e. The note payable on the April 30 balance sheet will be paid during May, with $160 in interest. (All of the interest relates to May.) f. New refrigerating equipment costing $15,000 will be purchased for cash during May. g. During May, the company will borrow $26,600 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 Regulieru 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. Reg 1 and 2 Req3 Reg 4 Reg 5 1. Calculate the expected cash collections from customers for May 2. Calculate the expected cash disbursements for merchandise purchases for May. Total cash collections Total cash disbursements keq 1 and 2 keq 3 keq 4 keq 5 Prepare a cash budget for May. (Cash deficiency, repayments and interest should be indicated 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 Req 1 and 2 Req 4 > 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. Req 1 and 2 Req3 Reg 4 Prepare a budgeted income statement for May. Minden Company Budgeted Income Statement For the Month of May Req3 Req5 > Req 1 and 2 Reg 3 Req 4 Req 5 Prepare a budgeted balance sheet as of May 31. Minden Company Budgeted Balance Sheet May 31 Assets |||| Total assets Liabilities and Stockholders' Equity Total liabilities and stockholders' equity

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