Req 1 and 2 Req 3 Req 4 Req 5 Prepare a budgeted balance sheet as of May 31 Minden Company Budgeted Balance Sheet May 31 Assets Cash Accounts receivable Inventory Buildings and equipment, net of depreciation 0 Total assets Liabilities and Stockholders' Equity Accounts payable Note payable Common stock Retained earnings $ Total liabilitiess and stockholders' equity 0 Req 4 Req 5 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 company's balance sheet as of April 30 is given below Minden Company Balance Sheet April 30 Assets Cash 9,500 56,500 53,250 234,000 Accounts receivable Inventory Buildings and equipment, net of depreciation $ 353,250 Total assets Liabilities and Stockholders' Equity Accounts payable Note payable $ 79,000 20,000 180,000 74,250 Common stock Retained earnings $ 353,250 Total liabilities and stockholders' equity The company is in the process of preparing a budget for May and has assembled the following data: a. Sales are budgeted at $299,000 for May. Of these sales, $89,700 will be for cash; the remainder will bee 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 $169,000 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 d. Selling and administrative expenses for May are budgeted at $89,700, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $2,250 for the month e. The note payable on the April 30 balance sheet will be paid during May, with $320 in interest. (All of the interest relates to May) f. New refrigerating equipment costing $7,200 will be purchased for cash during May. g. During May, the company will borrow $25,200 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 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. Req 1 and 2 Req 3 Req 4 Req 5 1. Calculate the expected cash collections for May. 2. Calculate the expected cash disbursements for merchandise purchases for May. Total cash collections Total cash disbursements > Req 1 and 2 Req 3 Prepare a cash budget for May. (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 0 Less cash disbursements: Purchase of inventory Selling and administrative expenses Purchases of equipment Total cash disbursements 0 Excess of cash available over disbursements 0 Financing: Borrowing-note Repayments-note Interest Total financing 0 Ending cash balance Req 4 Req 1 and 2 Req 1 and 2 Req 3 Req 4 Req 5 Prepare a budgeted income statement for May. Minden Company Budgeted Income Statement For the Month of May Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income 0 Interest expense Net income $ 0 Req 3 Req 5