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1 Minden Company is a wholesale distributor of premium European chocolates. The compariy's balance sheet as of April 30 is given below 5 points Minden Company Balance Sheet April 30 Arnets Cash Accounts receivable Tnventory Buildings and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Note payablo Common stock Retained earnings Total Habilities and stockholdersquity 9.000 14.000 10,000 207.000 Mence 61,000 14,50 110,000 42,500 $ 300.000 The company is in the process of preparing a budget for May and has assembled the following cata: a Sales are budgeted at $220,000 for May. Of these sales, $60,000 will be for cash; the remainder will be credit sales. Each month's credit sales are collected 60% in the month of sale and 40% in the month following the sale. All of the April 30 accounts receivable will be collected in May, b. Purchases of inventory are expected to total $120.000 during May. These purchases will all be on account. The company pays for 50% of its merchandise purchases in the month of the purchase and the remaining 50% in the month following the purchase. All of the April 30 accounts payable to suppliers will be paid during May, The May 31 inventory balance is budgeted at $40,000 d. Selling and administrative expenses for May are budgeted at $72,000, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $2,000 for the month, e. The note payable on the April 30 balance sheet will be paid during May, with $100 in interest. All of the Interest relates to May Chapter 8 Homework Lad 1 e prace JU GLEDE WA Way, VT IUUEN. Hay New refrigerating equipment costing $6,500 will be purchased for cash during May. g. During May, the company will borrow $20,000 from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year outs efloch 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 References Complete this question by entering your answers in the tabs below. Reg 1 and 2 Required 3 Required 4 Required 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 Complete this question by entering your answers in the tabs below: Req 1 and 2 Required 3 Required 4 Required 5 encen 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 collection 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 preowucyCiCU WOTOFILO DISCLOS HOY JL Complete this question by entering your answers in the tabs below. Req 1 and 2 Required 3 Required 4 Required 5 Prepare a budgeted income statement for May. Minden Company Budgeted Income Statement For the Month of May 0 0 $ 0 VOIR 1 Req 1 and 2 Required 3 Required 4 Required 5 Prepare a budgeted balance sheet as of May 31 Minden Company Budgeted Balance Sheet May 31 Assets alpok Print rences Total assets $ 0 Liabilities and Stockholders' Equity S 0 Total liabilities and stockholders equity

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