Problem 8 1 9 ( Algo ) Cash Budget Income Statement Balance Sheet LO 8 2 , LO 8 4 , LO 8 8 , LO 8 9 , LO 8 1 0 Minden Company is a wholesale distributor of premium European chocolates The company s balance sheet as of April 3 0 is given below Minden Company Balance Sheet April 3 0 Assets Cash $ 1 4 , 5 0 0 Accounts receivable 7 2 , 7 5 0 Inventory 3 1 , 7 5 0 Buildings and equipment, net of depreciation 2 0 9 , 0 0 0 Total assets $ 3 2 8 , 0 0 0 Liabilities and Stockholders Equity Accounts payable $ 6 9 , 5 0 0 Note payable 1 6 , 0 0 0 Common stock 1 8 0 , 0 0 0 Retained earnings 6 2 , 5 0 0 Total liabilities and stockholders equity $ 3 2 8 , 0 0 0 The company is in the process of preparing a budget for May and assembled the following data Sales are budgeted at $ 2 4 7 , 0 0 0 for May Of these sales, $ 7 4 , 1 0 0 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 are collected in the following month All of the April 3 0 accounts receivable will be collected in May Purchases of inventory are expected to total $ 1 7 2 , 0 0 0 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 3 0 accounts payable to suppliers will be paid during May The May 3 1 inventory balance is budgeted at $ 5 8 , 5 0 0 Selling and administrative expenses for May are budgeted at $ 8 7 , 6 0 0 , exclusive of depreciation These expenses will be paid in cash Depreciation is budgeted at $ 6 , 8 5 0 for the month The note payable on the April 3 0 balance sheet will be paid during May, with $ 3 8 5 in interest ( All of the interest relates to May ) New refrigerating equipment costing $ 1 3 , 4 0 0 will be purchased for cash during May During May, the company will borrow $ 2 2 , 9 0 0 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 For May Calculate the expected cash collections from customers Calculate the expected cash disbursements for merchandise purchases Prepare a cash budget Prepare a budgeted income statement Prepare an end of month budgeted balance sheet 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 Required 3 Prepare a cash budget for May Note Cash deficiency, repayments and interest should be indicated by a minus sign 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 Required 4 Required 1 and 2 Required 3 Required 4 Required 5 Prepare a budgeted income statement for May table Minden Company , Budgeted Income Statement, , For the Month of May, , , , , Required 5 Prepare an end of month budgeted balance sheet as of May 3 1 Minden Company Budgeted Balance Sheet May 3 1 Assets Total assets Liabilities and Stockholders Equity Total liabilities and stockholders equity

Question

Problem 8   1 9 ( Algo ) Cash Budget  Income Statement  Balance Sheet   LO 8   2 , LO 8   4 , LO 8   8 , LO 8   9 , LO 8   1 0   Minden Company is a wholesale distributor of premium European chocolates  The company s balance sheet as of April 3 0 is given below  Minden Company Balance Sheet April 3 0 Assets Cash $ 1 4 , 5 0 0 Accounts receivable 7 2 , 7 5 0 Inventory 3 1 , 7 5 0 Buildings and equipment, net of depreciation 2 0 9 , 0 0 0 Total assets $ 3 2 8 , 0 0 0 Liabilities and Stockholders Equity Accounts payable $ 6 9 , 5 0 0 Note payable 1 6 , 0 0 0 Common stock 1 8 0 , 0 0 0 Retained earnings 6 2 , 5 0 0 Total liabilities and stockholders equity $ 3 2 8 , 0 0 0 The company is in the process of preparing a budget for May and assembled the following data  Sales are budgeted at $ 2 4 7 , 0 0 0 for May  Of these sales, $ 7 4 , 1 0 0 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 are collected in the following month  All of the April 3 0 accounts receivable will be collected in May  Purchases of inventory are expected to total $ 1 7 2 , 0 0 0 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 3 0 accounts payable to suppliers will be paid during May  The May 3 1 inventory balance is budgeted at $ 5 8 , 5 0 0   Selling and administrative expenses for May are budgeted at $ 8 7 , 6 0 0 , exclusive of depreciation  These expenses will be paid in cash  Depreciation is budgeted at $ 6 , 8 5 0 for the month  The note payable on the April 3 0 balance sheet will be paid during May, with $ 3 8 5 in interest  ( All of the interest relates to May  ) New refrigerating equipment costing $ 1 3 , 4 0 0 will be purchased for cash during May  During May, the company will borrow $ 2 2 , 9 0 0 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  For May  Calculate the expected cash collections from customers  Calculate the expected cash disbursements for merchandise purchases  Prepare a cash budget  Prepare a budgeted income statement  Prepare an end   of   month budgeted balance sheet  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 Required 3   Prepare a cash budget for May  Note  Cash deficiency, repayments and interest should be indicated by a minus sign  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 Required 4   Required 1 and 2 Required 3 Required 4 Required 5 Prepare a budgeted income statement for May    table     Minden Company   ,   Budgeted Income Statement,   ,   For the Month of May,   ,   ,   ,   ,     Required 5   Prepare an end   of   month budgeted balance sheet as of May 3 1   Minden Company Budgeted Balance Sheet May 3 1 Assets Total assets Liabilities and Stockholders Equity Total liabilities and stockholders equity

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Problem 8 - 1 9 ( Algo ) Cash Budget; Income Statement; Balance Sheet [ LO 8 - 2 , LO 8 - 4 ,

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