Problem 8 19 Cash Budget Income Statement Balance Sheet LO8 2, LO8 4, LO8 8, LO8 9, LO8 10 Minden Company is a wholesale distributor of premium European chocolates The companys balance sheet as of April 30 is given below Minden Company Balance Sheet April 30 Assets Cash $ 12,000 Accounts receivable 77,500 Inventory 42,000 Buildings and equipment, net of depreciation 225,000 Total assets $ 356,500 Liabilities and Stockholders Equity Accounts payable $ 78,250 Note payable 19,300 Common stock 180,000 Retained earnings 78,950 Total liabilities and stockholders equity $ 356,500 The company is in the process of preparing a budget for May and has assembled the following data Sales are budgeted at $231,000 for May Of these sales, $69,300 will be for cash the remainder will be credit sales One half of a months 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 $139,000 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 The May 31 inventory balance is budgeted at $55,000 Selling and administrative expenses for May are budgeted at $83,400, exclusive of depreciation These expenses will be paid in cash Depreciation is budgeted at $6,200 for the month The note payable on the April 30 balance sheet will be paid during May, with $155 in interest (All of the interest relates to May ) New refrigerating equipment costing $12,500 will be purchased for cash during May During May, the company will borrow $24,000 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

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Problem 8-19 Cash Budget; Income Statement; Balance Sheet [LO8-2, LO8-4, LO8-8, LO8-9, LO8-10]

Minden Company is a wholesale distributor of premium European chocolates. The companys balance sheet as of April 30 is given below:

Minden Company Balance Sheet April 30
Assets
Cash	$	12,000
Accounts receivable		77,500
Inventory		42,000
Buildings and equipment, net of depreciation		225,000
Total assets	$	356,500
Liabilities and Stockholders Equity
Accounts payable	$	78,250
Note payable		19,300
Common stock		180,000
Retained earnings		78,950
Total liabilities and stockholders equity	$	356,500

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

Sales are budgeted at $231,000 for May. Of these sales, $69,300 will be for cash; the remainder will be credit sales. One-half of a months 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 $139,000 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.
The May 31 inventory balance is budgeted at $55,000.
Selling and administrative expenses for May are budgeted at $83,400, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $6,200 for the month.
The note payable on the April 30 balance sheet will be paid during May, with $155 in interest. (All of the interest relates to May.)
New refrigerating equipment costing $12,500 will be purchased for cash during May.
During May, the company will borrow $24,000 from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year.