Question

Please help me with each section

13 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 $ 9,000 54,000 20,000 207,000 $ 200,000 $ 63,000 14,500 180,000 42,500 $ 300,000 The company is in the process of preparing a budget for May and has assembled the following data: a. Sales are budgeted at $220.000 for May. Of these sales. $60.000 will be for cash; the remainder will be credit sales. Each month's credit sales are collected 60% in the month of sale and 40% in the month following the sale. All of the April 30 accounts receivable will be collected in May. b. Purchases of inventory are expected to total $120.000 during May. These purchases will all be on account. The company pays for 50% of its merchandise purchases in the month of the purchase and the remaining 50% in the month following the purchase. All of the April 30 accounts payable to suppliers will be paid during May. c. The May 31 inventory balance is budgeted at $40.000. d. Selling and administrative expenses for May are budgeted at $72,000, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $2.000 for the month. e. The note payable on the April 30 balance sheet will be paid during May, with $100 in interest. (All of the interest relates to May.) f. New refrigerating equipment costing $6,500 will be purchased for cash during May. g. During May, the company will borrow $20.000 from its bank by giving 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 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. Req 1 and 2 Required 3 Required 4 Required 5 1. Calculate the expected cash collections for May. 2. Calculate the expected cash disbursements for merchandise purchases for May. Total cash collections Total cash disbursements < Req 1 and 2 Required 3 >

Answer 1

1-a)	Schedule of Expected cash collection
	Cash sales-May					60,000
	Collections on account receivable
	April 30 balance					54,000
	May sales		(220000-60000)*60%			96000
	total cash recepits					210,000
	Schedule of Expected cash disbursements
	April 30 accounts payable balance					63,000
	May purchases		(120000*50%)			60000
	total cash payments					123,000
1-b)	Cash Budget
	Beginning cash balance					9,000
	Add Collections from customers					210,000
	total cash available					219,000
	less Cash disbursements
	purchase of inventoru					123,000
	selling and administrative expense					72,000
	purchase of Equipment					6,500
	total cash disbursements					201,500
	Excess of cash available over disbursements					17,500
	financing:
	borrowing -note					20,000
	Repayments-note					-14,500
	interest					-100
	total financing					5,400
	Ending cash balance					22,900
	Budgeted income statement
	sales					220,000
	cost of goods sold:
	beginning inventory				30,000
	purchases				120,000
	goods available for sale				150,000
	ending invnetory				40,000
	cost of goods sold:					110,000
	Gross margin					110,000
	Selling and administrative expesne					74,000
	net operating income					36,000
	interest expesne					100
	net income					35,900
	Budgeted balance sheet
	Assets
	Cash					22,900
	Account receivable					64000
	inventory					40,000
	buildings & equipment,net of depreciaiton					211500
	total Assets					338,400
	Laibilities & stockholder's Equity
	Accounts payable					60000
	note payable					20,000
	common stock					180,000
	Retained earnings					78,400
	total liabilities & stockholders equity					338400