Minden Company is a wholesale distributor of premium European chocolates below .
ID: 2508824 • Letter: M
Question
Minden Company is a wholesale distributor of premium European chocolates below . The company's balance sheet as of April 30 is given Minden Company Balance Sheet April 3e Assets Cash Accounts receivable Inventory Buildings and equipment, net of depreciation Total assets 17,20e 58,880 48,250 204,80e $ 327,450 Liabilities and Stockholders' Equity Accounts payable Note payable Common stock Retained earnings Total Ilabilities and stockholders' equity 67,800 16, 200 188,000 64,258 S 327,450 The company is in the process of preparing a budget for May and has assembled the following data 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 Apri 30 accounts recelvable will be collected in May a Sales are budgeted at $253,000 for May. Of these sales, $75.900 will be for cash; the remainder will be credit sales. One-half of a K Prey 4 of 9Next>Explanation / Answer
Minden Company
Cash Budget
For the Month of May
Beginning Cash Balance
17200
Add:- Collection from Customers
222450
Total Cash Available
239650
Less Cash Disbursement
Purchase of Inventory
123000
Selling and Admin Exp
93000
Purchase of Equipment
11100
Total Cash Disbursement
227100
Excess of Cash available for disbursement
12550
Financing
Borrowing - Note
25400
Repayments - Note
-16200
Interest
-300
Total Financing
8900
Ending Cash Balance
21450
Working - 1
Total Sales
253000
Cash Sale
75900
Credit Sale
177100
Collected in the Month of April
88550
Trade receivable as on May
88550
Minden Company
Budgeted Income Statement
For the Month of May
Sales
253000
Cost of Goods Sold
Beginning Inventory
48250
Purchases
140000
Goods Available for Sale
188250
Ending Inventory
47000
Cost of Goods Sold
141250
Gross Margin
111750
Selling and Admin Exp
93000
Net Operating Income
18750
Interest Exp
300
Depreciation
2850
Net Income
15600
Minden Company
Budgeted Balance Sheet
For the Month of May
Cash
21450
Accounts Receivable
88550
Inventory
47000
Building and Equipment ( Net of Dep )
212250
Total Assets
369250
0
Account Payable
84000
Note Payable
25400
Common Stock
180000
Retained Earnings
79850
Total Liabilities and Shareholders Equity
369250
Minden Company
Cash Budget
For the Month of May
Beginning Cash Balance
17200
Add:- Collection from Customers
222450
Total Cash Available
239650
Less Cash Disbursement
Purchase of Inventory
123000
Selling and Admin Exp
93000
Purchase of Equipment
11100
Total Cash Disbursement
227100
Excess of Cash available for disbursement
12550
Financing
Borrowing - Note
25400
Repayments - Note
-16200
Interest
-300
Total Financing
8900
Ending Cash Balance
21450
Working - 1
Total Sales
253000
Cash Sale
75900
Credit Sale
177100
Collected in the Month of April
88550
Trade receivable as on May
88550
Minden Company
Budgeted Income Statement
For the Month of May
Sales
253000
Cost of Goods Sold
Beginning Inventory
48250
Purchases
140000
Goods Available for Sale
188250
Ending Inventory
47000
Cost of Goods Sold
141250
Gross Margin
111750
Selling and Admin Exp
93000
Net Operating Income
18750
Interest Exp
300
Depreciation
2850
Net Income
15600
Minden Company
Budgeted Balance Sheet
For the Month of May
Cash
21450
Accounts Receivable
88550
Inventory
47000
Building and Equipment ( Net of Dep )
212250
Total Assets
369250
0
Account Payable
84000
Note Payable
25400
Common Stock
180000
Retained Earnings
79850
Total Liabilities and Shareholders Equity
369250