Problem $8-19($Algo$)$ Cash Budget; Income Statement; Balance Sheet $[$LO$8-2,$ LO$8-4,$ LO$8-8,$ LO$8-9,$ LO$8-$

$10]$

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

below:

The company is in the process of preparing a budget for May and has assembled the following data:

a$.$ Sales are budgeted at $$253,000$ for May. Of these sales, $$75,900$ 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.

b$.$ Purchases of inventory are expected to total $$140,000$ 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 $$47,000.$

d$.$ Selling and administrative expenses for May are budgeted at $$93,000,$ exclusive of depreciation. These expenses will be paid in

cash. Depreciation is budgeted at $$2,850$ for the month.

e$.$ The note payable on the April $30$ balance sheet will be paid during May, with $$300$ in interest. $($All of the interest relates to May.$)$

f$.$ New refrigerating equipment costing $$11,100$ will be purchased for cash during May.

g$.$ During May, the company will borrow $$25,400$ 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:

Calculate the expected cash collections from customers for May.

Calculate the expected cash disbursements for merchandise purchases for May.

Prepare a cash budget for May.

Prepare a budgeted income statement for May.

Prepare a budgeted balance sheet as of May $31.$ Complete this question by entering your answers in the tabs below.

Req $1$ and $2$

Calculate the expected cash collections from customers for May.

Calculate the expected cash disbursements for merchandise purchases for May.

Total cash collections

Total cash disbursements Req $1$ and $2$

Req $3$

Req $4$

Prepare a cash budget for May. $($Cash deficiency, repayments and interest should be indicated by a minus sign.$)$

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Req $4$

Req $5$

Prepare a budgeted income statement for May.Prepare a budgeted balance sheet as of May $31.$