potets Modern Company is a wholesale distributor of premism European chocolates. The company's halwe shost as of April 30 gives b Modern Company Balance Sheet April 30 Assets Accounts receivable Inventory $18,500 38.500 40,750 202.000 Buildings and equipment, net of depreciation Total assets $319,750 Liabilities and Stockholders' Equity $67,750 Accounts payable Note payable Common stock $15,800 180.000 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: 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 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 $193,000 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 p ing 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 fu the month. W 5319,750 The company is in the process of preparing a budget for May and assembled the following date 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 mouth's erotin sales are collected us thin month the sales are made, and the remainder is collected in the following moth All of the April 30 accounts receivable will be collected in May Purchases of inventory are expected to total $193,000 dering May. These parchases will all be on account. Forty percent of all purchases are past 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 $63,000 Selling i and administrative expenses for May are budgeted at $71,200, exclusive of depreciation. These expenses will be paid in cah. Depreciation is budged $4,650 for the month The note payable on the April 30 balance sheet will be paid dhaning 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 dut amount. The new note will be dor in one yest Required: Using the information provided, prepare the following: 1. The budgeted 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 (5 marks] For the toolbar, press ALT F10 (PC) or ALT-FN-F10 (Mac) BI Paragraph Arial 10pt Y
