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. 1. Calculate the expected cash collections from customers for May. 2. Calculate the expectied cash disbursements for merchandise purchases for May. Problem 8-19 (Algo) Cash Budget; Income Statement; Balance Sheet [LO8-2, LO8-4, LO8-8, LO8-9, LO810] Minden Company ls a wholesale distributor of premium European chocolates. The company/s baiance sheet as of April 30 is given belows: The company is in the process of preparing a budget for May and has assembled the following data: a. Sales are budgeted at $227,000 for May, Of these sales, $68.100 will be for cash; the remainder will be credit sales. One hat of a month's credit saies are collected in the month the sales are made, and the remainder is collected in the followng month. All of the April 30 accounts recelvable will be collected in May. b. Purchases of inventory are expected to total $159,000 during May. These purchases will all be on account. Forty percent of all Presate a bodpeted balance theot as of May Ji a. Sales, ore budgeted at $227,000 for May. Of these sales, $68,100 will be for cast, the remainder will be credit sales, One thalf 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 recelvable will be collected in May. b. Purchases of inventory are expected to total $159,000 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 pold during May. c. The May 31 inventory balance is budgeted at $87,500. d. Siling and administrative expenses for May are budgeted at $79,500, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $6.000 for the month. e. The note paryable on the April 30 balance street will be paid during May. with $105 in interest. (All of the interest relates to May) t. New refrigerating equipment costing $11,800 will be purchased for cash during May. 9. During May, the company will borrow $25100 from its bank by giving a new note payable to the bank for that amount. The new noto will be due in one yeat. Required: 1. Calcuinte tre expected casin collections from customers for May. 2. Calculate the expected cast disbursements for merchandise purchases for May. 3. Prepare a cash buidget for May 4. Propare 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 helow. Pegare a builgeted lacome statcment foc May 8
