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 Aril 10 Assets Cash Accounts receivable Inventory Buildings and equipment, het of depreciation Total assets Libilities and stockholders Squity Accounts payable wote payable Connon stock Retained earnings Total liabilities and stockholders equity 25,000 70,20 35.75 282.ee $ 74,750 14,700 100,000 2220 $ 145, The company is in the process of prepanng budget for May and to assembled the following a. Sales are budgeted at 5260,000 for May of these sies $78,000 will be for cash the remaindebe crestes One half of a month's credit sales are collected in the month the sales are made and the remainderi cotton the following All of the April 30 accounts receivable will be collected in May h Purchases of inventory are expected to total $155.000 during May. These purchases will be account Fony percent of purchases are paid for in the month of purchase the remainder are paid in the following com Aloe Are 30 accounts payable to suppliers will be paid during May The May 31 inventory balance budgeted at $59.500 Selling and administrative expenses for May are budgeted at $99.500. dove of deprecoon These espaces we paid in Cash Depreciation is budgeted at $4550 for the month The note payable on the Apni 30 balance sheet be paid during my with $450 interest of restro Mayo New refrigerating equipment costing ST1000 will be purced for con during May Ouring May the company will borrow $21500 from its bank by giving a new note payable to the bank to the amount the new bote will be due in one year Required Calculate the expected cash collection from customers for May 2 Calculate the extracted con disbursements for mercharchases for Proch budget for May Prepare a bongo come statement to May Proboogeted another of May Complete this question by entering your answers in the tabs below. here to search April 30 accounts receivable will be collected in May. b. Purchases of Inventory are expected to total $155,000 during May. These p purchases are pald for in the month of purchase, the remainder are paid in to suppliers will be paid during May. c. The May 31 Inventory balance is budgeted at $59,500. d. Selling and administrative expenses for May are budgeted at $99,500, exclu cash. Depreciation is budgeted at $4,550 for the month. e. The note payable on the April 30 balance sheet will be paid during May, with f. New refrigerating equipment costing $11,000 will be purchased for cash duri g. During May, the company will borrow $21.500 from its bank by giving a 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 M 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. Reg 1 and 2 Reg 3 Reg 4 Reg 5 1. Calculate the expected cash collections from customers for May. 2. Calculate the expected cash disbursements for merchandise purchases for May, Total cash collections Total cash disbursements 2. Calculate the ex 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 Req3 Reg 4 Reg 5 Prepare a cash budget for May. (Cash deficiency, repayments and interest should be Minden Company Cash Budget For the Month of May Beginning cash balance Add collections from customers Total cash available Less cash disbursements Purchase of inventory Selling and administrative expenses Purchases of equipment Total cash disbursements Excess of cash available over disbursements Financing Borrowing-note Repayments-note Interest Totat financing Ending cash balance * Reat and Reg4 e. The note payable on the April 30 balance sheet will be paid during May, with f. New refrigerating equipment costing $11,000 will be purchased for cash during g. During May, the company will borrow $21,500 from its bank by giving a new ne 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 Ma 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. Reg 1 and 2 Reg 3 Reg 4 Reg 5 Prepare a budgeted income statement for May. Minden Company Budgeted Income Statement For the Month of May
