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

Sales are budgeted at $263,000 for May. Of these sales, $78,900 will be for cash; the remainder will be credit sale. 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 inventorv are expected to total $193.000 during May. These purchaser will all be on account. Forty percent of all purchases are paid for in the month of purchate; 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 in budgeted at $63.000.

Selling and administrative expenses for May are budgeted at $73,200, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $4,650 for the month.

The note payable on the April 30 balance sheet will be paid during May, with $300 in interest. (All of the interest relates to May.)

New reftigerating equipment conting $11,900 will be purchased for cash during May.

During May, the company will borrow $27,200 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: (8 markol

Daing the information provided, prepare the following:

1. The budgeted expected cash collections from customers for May. (2 marks]

2. The budreted expected cash disbursements for merchandise purchases for May. [1 marks]

3. The cash budgeted for May (5 marku)

O h Bungen skers Thrempulan data of App Mikic Bad S Apad 18% 40% DOCE TORON Estat a fathelimey and Sonnikkokken, Egests, les parad Niet perable 1X009 TECON 100 230 Komme Toral habities and checkbikes gait TORNS The in the pe of peparing her fie Majd has led de felg The ball at y help sa mabic will be co Pakaim of t ng May. These packass will att for er of all perbid May Of de les 1900 will be be ca y are expected to $10,000 balme bodyed $1,000 e expense May are bored a $3,200, schove of deprecies. These res will be pad doing Mar The May Selling and ad The payable a New geng y Dung May the company Balance sheet will be paid dwing Meu E100 ng $11.900 will be purchand for cak ing May bo 127,200 om in bok by giving a cewe payable to the bad that The Required:[/ Ung the info provided proper the following 1 The budgeted expected cash collections from cuts for May 12 ) 2. The budgeted expected cash disbursements for mechandise purchases for May It mak 3 The cash Indorsed for May 15 marki For the top ALT PALT ! called in the following of purchase, de ser pad the following of Aged genieten in balpened $1.500 the wyww 06 the Ap pepp Modern Company is a wholesale distributor of premiums European chocolates. The company's balance sheet as of April 30 is given below. Modem Company Balance Sheet April 30 Assets Cash Accounts receivable $18,500 58,500 Inventory 40,750 Buildings and equipment, net of depreciation 202.000 Total assets $319,750 Liabilities and Stockholders' Equity Accounts payable $67,750 Note payable $15,800 Common stock 180,000 56,200 Retained earnings Total liabilities and stockholders' equity $319,750 4 in the process of preparing a budget for May and has assembled the following data Sales are budgeted at $263,000 for May Of these sales, $78,900 will be for cash, the remainder will be credit sales One-half of a month's credit sales are collected in the mouth the sales are ma accounts receivable will be collected in May Purchases of inventory are expected to total $193,000 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 will be paid during May The May 31 inventory balance is budgeted at $63,000 Selling and administrative expenses for May are budgeted at $73,200, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $4,650 for the month The note payable on the April 30 balance sheet will be paid during May, with $300 an interest (All of the interest relates to May.) New refrigerating equipment costing $11.900 will be purchased for cash during May During May, the company will borrow $27.200 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: (8 marks] Using the information provided, prepare the following 1. The budgeted expected cash collections from customers for May [2 marks] 2. The budgeted expected cash disbursements for merchandise purchases for May (1 marks) 3. The cash budgeted for May [5 marks] For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac) B IVS Paragraph M Arial IM 10pt $319,750 h; 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 readed v ese purchases will all be on account. Forty percent of all purchases are paid for in the month of purchase, the remainder we paid in the following me All of the Age clusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $4,650 for the with $300 in interest. (All of the interest relates to May) month uring May ew note payable to the bank for that amount. The new note will be due in one year day: [1 marks] Y Ev AVV XaXX, * 0) !!! O V 1 +7 L Modern Company is a wholesale distributor of premium European chocolates. The company's balance sheet as of April 30 is given below: Modern Company Balance Sheet April 30 Assets Cash Accounts receivable $18,500 58,500 Inventory 40,750 Buildings and equipment, net of depreciation 202,000 Total assets $319,750 Liabilities and Stockholders' Equity Accounts payable $67,750 Note payable $15,800 180,000 Common stock Retained earnings 56,200 Total liabilities and stockholders' equity $319,750