Questions are in the photos. Thank you !
1 Minden Company is a wholesale distributor of premium European chocolates. The company's balance sheet as of April 30 is given below: Minden Company Balance Sheet April 30 Assets Cash $ 9,400 Accounts receivable T8500 Inventory 44,000 Buildings and equipment, net of depreciation 221'000 Total assets $352300 Liabilities and Shareholders\" Equity Accounts payable $19,000 Note payable 19,?00 180,000 Common shares Retained earnings 81,200 Total liabilities and shareholders' equity $352'900 The company is in the process of preparing a budget for May and has assembled the following data: a. an ,-h Sales are budgeted at $2 56,000 for May. Ofthese sales, $TE,800 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 $188,000 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 $83,000. . Selling and administrative expenses for May are budgeted at $91,500, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $4,000 for the month. . The note payable on the April 30 balance sheet will be paid during May, with $435 in interest. {All of the interest relates to May.) New refrigerating equipment costing $7,000 will be purchased for cash during May. . During May, the company will borrow $23,100 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-a. Prepare a schedule of expected cash collections from sales and a schedule of expected cash disbursements for merchandise purchases" - Apri 3D accounts payable balance - May purchases - Total cash payments - 1-b. Prepare a cash budget for May. (Cash deficiency. repayments and interest should be indicated by a minus sign} Beginning cash balance Add collections from customers Total cash available Less cash disbursements: Purchase of inwentnr}.r Selling and administrative expenses Purchases of equipment Total cash disbursements Excess of cash available over d isbu rsements Financing: Borrowingnote Repaymentsnote Interest Total nancing Ending cash balance 2. Prepare a budgeted income statement for May. Minden Company Budgeted Income Statement For the Month of May Cost of goods sold: 3. Prepare a budgeted balance sheet as of May 31. Minden Company Budgeted Balance Sheet May 31 Assets Total assets Liabilities and Shareholders' Equity Total liabilities and shareholders' equity
