I've done most of it. I just need the repayments- notes on requirement 3. Then the cash and retained earnings on Requirement 5. I keep getting them wrong.
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 | $ | 14,500 |
Accounts receivable | 72,750 | |
Inventory | 31,750 | |
Buildings and equipment, net of depreciation | 209,000 | |
Total assets | $ | 328,000 |
Liabilities and Stockholders’ Equity | ||
Accounts payable | $ | 69,500 |
Note payable | 16,000 | |
Common stock | 180,000 | |
Retained earnings | 62,500 | |
Total liabilities and stockholders’ equity | $ | 328,000 |
The company is in the process of preparing a budget for May and has assembled the following data:
Sales are budgeted at $247,000 for May. Of these sales, $74,100 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 receivable will be collected in May.
Purchases of inventory are expected to total $172,000 during May. These purchases will all be on account. Forty percent of all 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 balance is budgeted at $58,500.
Selling and administrative expenses for May are budgeted at $87,600, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $6,850 for the month.
The note payable on the April 30 balance sheet will be paid during May, with $385 in interest. (All of the interest relates to May.)
New refrigerating equipment costing $13,400 will be purchased for cash during May.
During May, the company will borrow $22,900 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.
1-a) | Schedule of Expected cash collection | |||||||
Cash sales-May | 74,100 | |||||||
Collections on account receivable | ||||||||
April 30 balance | 72,750 | |||||||
May sales | (247000-74100)*50% | 86450 | ||||||
total cash recepits | 233,300 | |||||||
Schedule of Expected cash disbursements | ||||||||
April 30 accounts payable balance | 69,500 | |||||||
May purchases | (172000*40%) | 68800 | ||||||
total cash payments | 138,300 | |||||||
1-b) | Cash Budget | |||||||
Beginning cash balance | 14,500 | |||||||
Add Collections from customers | 233,300 | |||||||
total cash available | 247,800 | |||||||
less Cash disbursements | ||||||||
purchase of inventoru | 138,300 | |||||||
selling and administrative expense | 87,600 | |||||||
purchase of Equipment | 13,400 | |||||||
total cash disbursements | 239,300 | |||||||
Excess of cash available over disbursements | 8,500 | |||||||
financing: | ||||||||
borrowing -note | 22,900 | |||||||
Repayments-note | -16,000 | |||||||
interest | -385 | |||||||
total financing | 6,515 | |||||||
Ending cash balance | 15,015 | |||||||
Budgeted income statement | ||||||||
sales | 247,000 | |||||||
cost of goods sold: | ||||||||
beginning inventory | 31,750 | |||||||
purchases | 172,000 | |||||||
goods available for sale | 203,750 | |||||||
ending invnetory | 58,500 | |||||||
cost of goods sold: | 145,250 | |||||||
Gross margin | 101,750 | |||||||
Selling and administrative expesne | 87,600 | |||||||
Depreciation expense | 6,850 | |||||||
net operating income | 7,300 | |||||||
interest expesne | 385 | |||||||
net income | 6,915 | |||||||
Budgeted balance sheet | ||||||||
Assets | ||||||||
Cash | 15,015 | |||||||
Account receivable | 86450 | |||||||
inventory | 58,500 | |||||||
buildings & equipment,net of depreciaiton | 215550 | |||||||
(209,000+13,400-6,850) | ||||||||
total Assets | 375,515 | |||||||
Laibilities & stockholder's Equity | ||||||||
Accounts payable | 103200 | |||||||
note payable | 22,900 | |||||||
common stock | 180,000 | |||||||
Retained earnings | (62500+6915) | 69,415 | ||||||
total liabilities & stockholders equity | 375515 | |||||||
I've done most of it. I just need the repayments- notes on requirement 3. Then the...
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 $ 14,500 72,750 31,750 209,000 $ 328,000 $ 69,500 16,000 180,000 62,500 $ 328,000 The company is in the process of preparing a...
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 $ 14,500 Accounts receivable 72,750 Inventory 31,750 Buildings and equipment, net of depreciation 209,000 Total assets $ 328,000 Liabilities and Stockholders’ Equity Accounts payable $ 69,500 Note payable 16,000 Common stock 180,000 Retained earnings 62,500 Total liabilities and stockholders’ equity $ 328,000 The company is in the process of preparing a...
Please help with each
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Minden Company is a wholesale distributor of premium European chocolates. The company's balance sheet as of April 30 is given below: 11 Minden Company Balance Sheet April 30 Assets $ 14,500 Cash Accounts receivable 72,750 Inventory 31,750 Euildings and equipment, net of depreciation 209, 000 $328,000 Total assets Liabilities and Stockholders Equity Accounts payable Note payable $ 69,500 16,000 Common stock 180,000 62,500 Retained earnings Total liabilities and stockholders equity 328,000 The company is in...
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 $ 16,500 Accounts receivable 67,000 Inventory 32,000 Buildings and equipment, net of depreciation 249,000 Total assets $ 364,500 Liabilities and Stockholders’ Equity Accounts payable $ 68,750 Note payable 20,500 Common stock 180,000 Retained earnings 95,250 Total liabilities and stockholders’ equity $ 364,500 The company is in the process of preparing a...
10 value: 2.50 points 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 $12,700 66,500 48,500 229,000 Inventory Buildings and equipment, net of depreciation s356,700 Total assets Liabilities and Stockholders' Equity Accounts payable Note payable $67,500 19,100 180,000 Common stock Retained earnings 90,100 $356,700 Total liabilities and stockholders' equity The company is in the process of preparing a...
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 $ 9,500 56,500 53,250 234,000 Total assets $ 353,250 Liabilities and Stockholders' Equity Accounts payable Note payable Common stock Retained earnings $ 79,000 20,000 180,000 74,250 Total liabilities and stockholders' equity $ 353,250 The company is in the process of preparing a...
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 $ The company is in the process of preparing a budget for May...
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 S 16,500 67,000 32,000 249,000 Accounts receivable Inventory Buildings and equipment, net of depreciation $364,500 Total assets Liabilities and Stockholders Equity Accounts payable Note payable S 68,750 20,500 180,000 95,250 Common stock Retained earnings $ 364,500 Total liabilities and stockholders' equity The company is in the process of preparing a budget...
Minden Company is a wholesalle 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 $ 9,500 56,500 53,250 234,000 Accounts receivable Inventory Buildings and equipment, net of depreciation Total assets $353,250 Liabilities and Stockholders Equity Accounts payable Note payable Common stock Retained earnings $ 79,000 20,000 180,000 74,250 Total liabilities and stockholders' equity $ 353,250 The company is in the process of preparing a budget...
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 $ 16,500 67,000 32,000 249,000 Total assets $364,600 Liabilities and Shareholders' Equity Accounts payable Note payable Common shares Retained earnings $ 68,750 20,500 180,000 95,250 Total liabilities and shareholders' equity $364,500 The company is in the process of preparing a budget for...