![Problem 8-19 (Algo) Cash Budget; Income Statement; Balance Sheet (LO8-2, LO8-4, LO8-8, LO8-9, LO8-<br>10]<br>Minden Company Is a wholesale distributor of premlum European chocolates. The company's balance sheet as of April 30 is grven<br>below:<br>Minden Company<br>Balance Sheet<br>April 30<br>Assets<br>Cash<br>Accounts receivable<br>Inventory<br>Buildings and equipment, net of depreciation<br>18, e00<br>76, 000<br>32,508<br>243,e00<br>Total assets<br>$ 369, 500<br>Liabilities and Stockholders' Equity<br>Accounts payable<br>Note payable<br>Comon stock<br>Retained earnings<br>S 80, 250<br>13, 200<br>188, eee<br>96,850<br>$369, see<br>Total liabilities and stockholders ecuity<br>The company Is In the process of preparing a budget for May and has assemblec the following data:<br>a. Sales are budgeted at $238,000 for May. Of these sales, $71.400 will be for cash; the remalnder will be credit sales. One-half of a<br>month's credit sales are collected in the month the sales are made, and the remalnder is collected in the following month. All of the<br>April 30 accounts recelvable will be collected in May.<br>b. Purchases of Inventory are expected to total $124,000 during May. These purchases wil all be on account. Forty percent of all<br>purchases are pald for In the month of purchase; the remalnder are paid in the following month. All of the April 30 accounts payable<br>to suppliers wlil be pald during May.<br>c. The May 31 Inventory balance is budgeted at $24,000.<br>d. Selling and administrative expenses for May are budgeted at $86.100, exclusive of depreclation. These expenses will be pald in<br>cash. Depreciation is budgeted at $4,450 for the month<br>e. The note payable on the April 30 balance sheet will be pald during May, with $400 in Interest. (All of the interest relates to May)<br>1. New refrigerating equipment costing $15.100 will be purchased for cash during May.<br>g. During May, the company will borrow $23,800 from Its bank by glving a new note payable to the bank for that amount The new<br>note will be due in one year.<br>Required:<br>1. Calculate the expected cash collections from customers for May<br>2 Calculate the expected cash disbursements for merchandise purchases for May<br>3. Prepare a cash budget for May.<br>4. Prepare a budgeted Income statement for May.<br>5. Prepare a budgeted balance sheet as of May 31.<br>Complete this question by entering your answers in the tabs below.<br>Reg 1 arnd 2<br>Req 3<br>Reg 4<br>Reg 5<br>1. Calculate the expected cash collections from customers for May.<br>2. Calculate the expected cash disbursements for merchandise purchases for May<br>Total cash collections<br>Total cash disbursements<br>](https://s3.us-east-1.amazonaws.com/storage.unifolks.com/qimg-008/008_cs7lzj0-jepf0adq.jpeg)
Extracted text: Problem 8-19 (Algo) Cash Budget; Income Statement; Balance Sheet (LO8-2, LO8-4, LO8-8, LO8-9, LO8- 10] Minden Company Is a wholesale distributor of premlum European chocolates. The company's balance sheet as of April 30 is grven below: Minden Company Balance Sheet April 30 Assets Cash Accounts receivable Inventory Buildings and equipment, net of depreciation 18, e00 76, 000 32,508 243,e00 Total assets $ 369, 500 Liabilities and Stockholders' Equity Accounts payable Note payable Comon stock Retained earnings S 80, 250 13, 200 188, eee 96,850 $369, see Total liabilities and stockholders ecuity The company Is In the process of preparing a budget for May and has assemblec the following data: a. Sales are budgeted at $238,000 for May. Of these sales, $71.400 will be for cash; the remalnder will be credit sales. One-half of a month's credit sales are collected in the month the sales are made, and the remalnder is collected in the following month. All of the April 30 accounts recelvable will be collected in May. b. Purchases of Inventory are expected to total $124,000 during May. These purchases wil all be on account. Forty percent of all purchases are pald for In the month of purchase; the remalnder are paid in the following month. All of the April 30 accounts payable to suppliers wlil be pald during May. c. The May 31 Inventory balance is budgeted at $24,000. d. Selling and administrative expenses for May are budgeted at $86.100, exclusive of depreclation. These expenses will be pald in cash. Depreciation is budgeted at $4,450 for the month e. The note payable on the April 30 balance sheet will be pald during May, with $400 in Interest. (All of the interest relates to May) 1. New refrigerating equipment costing $15.100 will be purchased for cash during May. g. During May, the company will borrow $23,800 from Its bank by glving a new note payable to the bank for that amount The 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 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. Complete this question by entering your answers in the tabs below. Reg 1 arnd 2 Req 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