70.2K

Verified Solution

Link Copied!

Minden Company is a wholesale distrbuacr of premium European chocolates. The company's balance sheet as of April 30 is given Gelowr The company sin the procets of peeparing a budger for May and hat atsembled the following data 4. Sales are bsogeted at 5299,000 for May. Of these saies, $89,700 wit be foe casc; the remainder will be creot wive, One-hat of a montri credn wies are collected in the month the sales we mede, and the remainder is colected in the following month. All of the Apris 30 accounts recelvable will be collected in May purthases are paid for in the month of purchase, the remainder ace paid in the followng month. All of ine April 30 sccounti payabile to supplecs vile be paid during Moy. c. The Moy 3t invertory balance is buogeted at $42,000. d Feling end admustrothe expenses for Myy are budgeted at $99200, exclustive of depreciation These expenses wis be paid in cash Depreciation is budgeted at $2.250 tor the month. t New reficherabisg ecuipmemt costing $7200 wil be purchased for cash during May. note wal be due in one year. Required: 1. Cakivilate she expecsed cash coliections from customers for May 2 Calcidate the eipected cosh osburtements for merchandse purchases for May. 3. Prepare e crih budper for May 4. Propare a budgeted incoge sumersent tor May, 5. Piepore a butgeted belance ineet at of Moy 3t Complete this question by entering veur answers in the tabs betow. Prelare a budgeted incame starement for Man. The company it in the process of preporing a budget for Moy and has assembled the folowing dath: a. Sales are budgeted at $299,000 for May, Of these sales, 589,700 will be for cash, the remainder wil be credit sales. One-haif of a month's credit sales are coliected in the month the sales are mode, and the remainder is collected in the foliowing month. All of the b. Purchases of imentory are expected to total $169,000 during May, These purchases wil all be on account Forty percent of all purchases are paid for in the month of purchase, the remainder are pald in the followng month All of the April 30 accounts payable to suppliers will be pald during May. c. The Moy 31 inventory balance is budgeted at $42000 d. Selling and adninutrative expenses for Moy are budgeted at $99700, exclusive of depreciation These expenses wil be pald in cosh. Depreciation is budgeted at $2,250 for the month e. The nore payable on the Apti 30 balance sheer wil be pald during May, with $320 in interest (Adt of the interest relates to May) t. New refrigerating equlprtent costing $7200 wir be purchosed for cash during May 9. During Moy, the compeny will borrow $25200 trom its bank by giving a new note payable to the bank for that amount. The new note wa be due in one year. Required: Required: 1 Colculate the expected cash collections from customeis for May. 2 Cticutate the expected cash cisbursements for merchandise purchasen for May. 3. Prepare a cash budget for May. 4. Prepare a budgeted income statement for May 5 Prepare o budgeted batence stieet as of May 31 . Complete this question In nntering yoar anwers in the tabs below. Prepare a budgeted balance sheet as of May 31 Pequired: 1. Cicutite the expected canth collections from customess for May. 3 Piepele a cach budget for May 4. Propore a budgeted income stat emert for May. Complete this question by entering vour antwers in the tabs beione. Prapare + budpeted tulance iheet as of Nin31 Minden Company is a wholesale distributor of premim European chocolates. The company's baiance sheel as of Aprit 30 is gven below: The company is in the process of preparing a budget for May and has assembled the following dote a Sales are budgeted at $299,000 to May Of these sales, $99,700 wil be for cash; the remainder wat be credit sales One-half of a montis crecs sales are coliected in the month the sales ate made, and the remainder is coliected in the following month. All of the Apell 30 accounts receivable will be collected in May b. Purchases of inventory are erpected to total $169.000 dung Mey. These purchases will all be on account. Forty peicent of al purchates are pad for in the month of purchase, the temainder ere paid in the following month All of the April 30 eccounts payable to supplert will be paid during May c. The May 31 inventory baleoce is budgeted on $42.000 d. Seling and admirustratve expertes foe May are budgeted an 569.700 . excluswe of deprecintion. These expenses wair be paid in cash, Depreciation is backeted at 32,250 for the moveth. - The note pryable on the Apill 30 batance sheet wat be paid during Moy, with $320 in interest. (All of the interest relates to May) t New reftigersting equipment costing $7,200 wa be pischosed for cesh during May g. During Moy, the company war borrow $25,200 tiem its bank by glving a new note payabie to the bank for that amount. The new note will be ave in one year Required: 1. Celculote the expected cosh collections from customers for May 2. Caiculate the expected cath disbursements for merchandse purchsies for May. i. Prepare e cath budget for May. 4 Prepdea budgeted income sutement for May. 5. Prepare a budgeted balance sheet os of Myy 31 . Complete this question by eatering vosi answers in the tabs below. Minden Company is a wholesale distributor of premium European chocolates. The company's balance sheet as of April 30 is given below The company is in the process of preparing a budget for May and has assembled the following data: a. Soles are budgeted at $299,000 for May, Of these saies, $89,700 wil be for cash; the remainder will be credit sales, One-half of a month's credit sales are collected in the month the soles are made, and the remoinder is collected in the following month. Alt of the April 30 accoints recelvable weit be collected in May? b. Purchases of inventory are expected to total $169,000 during May. These purchases wilt 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. C. The May 31 inventory balance is budgeted at $42.000 d Setting and administretwe expenses for Moy are budgeted at $89,700, exclusive of depreciation. These expenses wilt be pald in cash. Depreciation is budgeted of $2.250 for the month. e. The note payable on the April 30 balance theet wat be paid during May, with $320 in interest. (All of the interest relates to May) i. New refrigerating equipment costing $7,200 will be purchosed for cash duting May. 9. During May, the compary will borrow \$25,200 from its bask by giving a new note payabie to the bank for that amount. The new note wia be due in one veat. Required: 1. Caliculate the expected cash collections from custamers for May. 2. Caiculate the expected cash disbursements for merchandise purcheses for May. 3. Prepare a cash budget for Moy 4. Prepare a budgeted income statement for May. 5. Prepare a budgeted balance sheet as of May a Complete this question by entering your answers in the tabs below. 1. Calculate the expected cash collections from customers for Mor. 2. Cakulate the expected cash diatbursements for merchandise parchases for May

Answer & Explanation Solved by verified expert

See Answer