Minden Company is a wholesale distributor of premium European chocolates. The co
ID: 2741771 • Letter: M
Question
Minden Company is a wholesale distributor of premium European chocolates. The company's balanoe sheet as ofApril 30 is given below Minden Company Balance Sheet April 30 Assets $ 17200 58,000 Cash Accounts receiva ble Buildings and equipment, net of depreciation Total assets venthsle Liabilities and Stockholders' Equity 5 67,000 16,200 180,000 84,250 Note payable Common stock Retained earnings Total liabilities and stockholders equity 327,450 The company is in the process of preparing a budgetfor May and has assembled the following data: a. Sales are budgeted at $253,000 for May Ofthese sales, $75,900 will be for cash; 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 remainder is collected in the following month. All of the April 30 accounts reoeivable will be collected in May b. Purchases of inventory are expected to total $140,000 during May. These purchases will all be on account. Forty peroentofall 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 The May 31 inventory balanoe is budgeted at $47,000 c. d. Selling and administrative expenses for May are budgeted at $93,000, exclusive ofdepreciation. These e. The note payable on the April 30 balanoe sheet will be paid during May, with $300 in interest. (All of the f. New refrigerating equipment costing $11,100 will be purchased for cash during May expenses will be paid in cash. Depreciation is budgeted at $2,850 for the month interest relates to May) g During May,the company will borrow $25,400 from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year 1-a. Prepare a schedule of expected cash collections from sales and a schedule of expected cash disbursements for merchandise purchases.. Schedule of E Cash sales-May Cash Collections April 30 balanoe May sales Total cash receipts Schedule of E April 30 accounts payable balanoe May purchases Total cash payments xpected Cash DiExplanation / Answer
1-a. Minden Company
Schedule of expected cash collections
Minden Company
Schedule of expected cash disbursements
1-b Minden Company
Cash Budget
For the Month of May
2. Minden Company
Budgeted Income Statement
For the month of May
Minden Company
Budgeted Balance Sheet
May 31
$ Cash sales- May 75,900 Collection of accounts receivable April 30 balance 58,000 May sales 88,550 Total cash receipts 222,450