Question

Minden Company is a wholesale distributor of premium European chocolates. The company's balance sheet as of April 30 is given below. Minden Company Balance Sheet April 30 Assets Cash Accounts receivable Inventory Buildings and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Note payable Common stock Retained earnings Total liabilities and stockholders' equity 18,500 58,500 40,750 282,280 $319,750 67,750 15,800 180.000 56,200 319,750 $

Answer 1

1-a)	Schedule of Expected cash collection
	Cash sales-May					78,900
	Collections on account receivable
	April 30 balance					58,500
	May sales		(263000-58500)*50%			92050
	total cash recepits					229,450
	Schedule of Expected cash disbursements
	April 30 accounts payable balance					67,750
	May purchases		(193000*40%)			77200
	total cash payments					144,950
1-b)	Cash Budget
	Beginning cash balance					18,500
	Add Collections from customers					229,450
	total cash available					247,950
	less Cash disbursements
	purchase of inventoru					144,950
	selling and administrative expense					73,200
	purchase of Equipment					11,900
	total cash disbursements					230,050
	Excess of cash available over disbursements					17,900
	financing:
	borrowing -note					27,200
	Repayments-note					-15,800
	interest					-210
	total financing					11,190
	Ending cash balance					29,090
	Budgeted income statement
	sales					263,000
	cost of goods sold:
	beginning inventory				40,750
	purchases				193,000
	goods available for sale				233,750
	ending invnetory				63,000
	cost of goods sold:					170,750
	Gross margin					92,250
	Selling and administrative expesne					77,850
	net operating income					14,400
	interest expesne					210
	net income					14,190
	Budgeted balance sheet
	Assets
	Cash					29,090
	Account receivable					92050
	inventory					63,000
	buildings & equipment,net of depreciaiton					209250
	total Assets					393,390
	Laibilities & stockholder's Equity
	Accounts payable					115800
	note payable					27,200
	common stock					180,000
	Retained earnings					70,390
	total liabilities & stockholders equity					393390