Problem 8-19 (Algo) Cash Budget; Imcome Statement; Balance Sheet [LO8-2, LO8-4, LO8-8, LO8-9, LO8-10]

The company is in the process of preparing a budget for May and has assembled the following data: a. Sales are budgeted at $257,000 for May. Of these sales, $77,100 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 $121,000 during Moy. 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. Alt of the April 30 accounts payable to suppliers will be paid during May. c. The May 31 inventory balance is budgeted at $31,000. d. Selling and administrative expenses for May ore budgeted at $83,700, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $2,800 for the month. e. The note payable on the April 30 balance sheet will be poid during Moy, with $340 in interest. (All of the interest relotes to May) t. New refrigerating equipment costing $13,100 will be purchased for cash during May. g. During May, the company will borrow $22,000 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: 1. Calculate 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. 5. Prepare a budgeted balance sheet as of May 31. Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. 1. Calculate the expected cash collections from customers for May. 2. Calculate the expected cash disbursements for merchandise purchases for May. Prepare a cash budget for May. (Cash deficiency, repayments and interest should be indicated by a Prepare a budgeted balance sheet as of May 31 . Prepare a budgeted income statement for May