Minden Company is a wholesale diatributor of premium furopean chocotates: The company =0 biance sheet os of Aprif 30 is given below. The company is in the process of preparing a budget for May and has assembled the following data a. Soles are budgeted ot \$214,000 for May Of these sales, $64,200 will be for cash, the remainder wil be credit sales. One-half of a month's credit sales are collected in the month the sales are made, and the remoinder is collected in the following month All of the Aprit 30 occounts recelvable will be collected in May b Purchases of inventory are expected to total \$122,000 during May. These purchases wal all be on account Forty percent of all purchases are paid for in the month of purchase; the remainder ore paid in the following month. All of the Aprit 30 accounts payable to suppliers will be paid during May: c. The May 31 inventory balance is budgeted at $47,500 d. Selling and administrative expenses for May are budgeted at \$85,500. exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $2.050 for the month. e. The note payable on the April 30 balance sheet will be paid during May, with $390 in interest. (All of the interest relates to May) t. New refrigerating equipment costing $16,300 will be purchased for cash during May. g. During May, the company will borrow $24,500 from its bank by glving a new note payable to the bank for that amount. The new note will be due in one year. Required: 1. Calcufate 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. mevme statement Tor May. 1. Calculate the expected cash collections from customers for May. 2. Calculate the expected cash disbursements for merchandise purchases for May. Req 4 Reas \begin{tabular}{|l|} \hline \multicolumn{1}{|c|}{ Minden Company } \\ Cash Budget \\ \hline Beginning cash balance \\ \hline Add collections from customers of May \\ \hline Total cash available \\ \hline Less cash disbursements: \\ \hline Purchase of inventory \\ \hline Selling and administrative expenses \\ \hline Purchases of equipment \\ \hline Total cash disbursements \\ \hline Excess of cash available over disbursements \\ \hline Financing: \\ \hline Borrowing-note \\ \hline Repayments-note \\ \hline Interest \\ \hline Total financing \\ \hline Ending cash balance \\ \hline \end{tabular} Req 1 and 2 Req 4
