Modern Company is a wholesale distributor of premnim European chocolates. The company's balance sheet as of April 30 is given below: Modem Company Balance Sheet April 30 Assets Cash $18500 Accounts receivable 58,500 Inventory 40,750 Buildings and equipment, net of depreciation 202,000 Total assets $319,750 Liabilities and Stockholders' Equity Accounts payable $67.750 Note payable $15,800 Common stock 180,000 Retained earnings 56,200 Total liabilities and stockholders' equity $319,750 The company is in the process of preparing a budget for May and has assembled the following data are budgeted at $263,000 for May. Of these sales, $78,900 will be for cash; the remainder will be credit sales, One-half of a month's crebt 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 $193,000 during May. These purchases will all be on account. Forty percent of all purchases are paid for in the mouth of parchase: 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 in budgeted at $63,000. Selling and administrative expenses for May are budgeted at $73,200, exclusive of depreciation. These expenses will be paid in cash. Depreciation is hodgeted at 54,650 the month. The note payable on the April 30 balance sheet will be paid daring May, with $100 in interest (All of the interest relates to May 1 DELL Question Completion Status: Total liabilities and stockholders' equity $319,750 The company is in the process of preparing a budget for May and has assembled the following data Sales are budgeted at $263,000 for May. Of these sales, $78,900 will be for cash; the remainder will be credit sales. One-half of a mooth's credit sales are collected in the month the sales are made, and the remainder is collected in the following month. All of the Apeil 30 accounts receivable will be collected in May Purchases of inventory are expected to total $193,000 during May. These purchases will all be on account. Forty percent of all purchases are paid for in the mouth 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 $63,000 Selling and administrative expenses for May are budgeted at $73,200, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $4,650 for the month. The note payable on the April 30 balance sheet will be paid during May, with 5300 in interest (All of the interest relates to May) New refrigerating equipment costing $11.900 will be purchased for cash during May 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: (8 marks] Using the information provided, prepare the following 1. The bodgeted expected cash collections from customers for May [2 marks] 2. The budgeted expected cash disbursements for merchandise purchases for May. (1 marks) 3. The cash budgeted for May. 15 marks] For the toolbar, press ALT-F100PC or ALT-EN-F10 (Mac) B 1 I XOQ *** VS Paragraph Anal E 10pt DELL
