Problem $8-19($Algo$)$ Cash Budget; Income Statement; Balance Sheet $($LO$8-2,$ LO$8-4,$ LO$8-8,$ LO$8-9,$ LO$8.10$

Minden Company is a wholesale distributor of premium European chocolares. The company's balance sheet as of April $30$ is given below:

The comparyy is in the process of preparing a budget for May and has assembled the following data:

a$.$ Sales are budgeted at $$266,000$ for May. Of these sales, $$79\mathrm{.}800$ 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 remainder is collected in the following month. All of the April $30$ accounts recelvable will be collected in May.

b$.$ Purchases of inventony are expected to total $$170\mathrm{.}000$ during May. These purchases will all be on account Forty percent of all purchases are paid for in the month of purchase; the remalnder are pald in the following month. All of the Aprll $30$ accounts payable to suppllers will be pald during May.

c$.$ The May $31$ inventory balance Is budgeted at $$44,500$

d$.$ Selling and administrative expenses for May are budgeted at $$81,900,$ exclusive of depreciatlon. These expenses will be pald in cash. Depreciation is budgeted at $$6\mathrm{.}450$ for the month.

e$.$ The note payable on the April $30$ balance sheet will be paid during May, with $$140$ in interest $($All of the interest relates to May.$)$

f$.$ New refrigerating equipment costing $$9\mathrm{.}600$ will be purchased for cash during May.

g$.$ During May, the company will borraw $$23,400$ from Its bank by giving a new note payable to the bank for that amount. The new note will be due in one year

Required:

Calculate the expected cash collections from customers for May.

$2$ Calculate the expected cash disbursements for merchandise purchases for May.

Prepare a cash budget for May.

Prepare a budgeted Income statement for May.

Prepare a budgeted balance sheet as of May $31.$

Complete this question by entering your answers in the tabs below.

$\backslash$table$[[$Rea $5$ and $20$ Rea $4,$Rea $5]]$

Prepare a cash budget for May. $($Cash deficiency, repayments and interest should be indicated by a minus sign.$)$

$\backslash$table$[[$Minden Company,$],[$Cosh Budget,$],[$For the Month of Moy,$],[$Seginning cash balarce,$],[$Add collections from customers,$],[$Total cash available,$],[$Less cash disbursements.,$],[$Purchase of inveriory,$],[$Selling and administrative expenses,$],[$Purchases of equipment,$],[$Toral cash disbursements,$],[$Excess of cash available over disbursements,$],[$Financing:$,],[$Borroxirg$-$note,$],[$Repayments$-$nore,$],[$Imerest$,],[$Toral financing,$],[$Ending cash balance,$]]$Problem $8-19($Algo$)$ Cash Budget; Income Statement; Balance Sheet $($LO$8-2,$ LO$8-4,$ LO$8-8,$ LO$8-9,$ LO$8.10$

Minden Company is a wholesale distributor of premium European chocolares. The company's balance sheet as of April $30$ is given below:

The comparyy is in the process of preparing a budget for May and has assembled the following data:

a$.$ Sales are budgeted at $$266,000$ for May. Of these sales, $$79\mathrm{.}800$ 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 remainder is collected in the following month. All of the April $30$ accounts recelvable will be collected in May.

b$.$ Purchases of inventony are expected to total $$170\mathrm{.}000$ during May. These purchases will all be on account Forty percent of all purchases are paid for in the month of purchase; the remalnder are pald in the following month. All of the Aprll $30$ accounts payable to suppllers will be pald during May.

c$.$ The May $31$ inventory balance Is budgeted at $$44,500$

d$.$ Selling and administrative expenses for May are budgeted at $$81,900,$ exclusive of depreciatlon. These expenses will be pald in cash. Depreciation is budgeted at $$6\mathrm{.}450$ for the month.

e$.$ The note payable on the April $30$ balance sheet will be paid during May, with $$140$ in interest $($All of the interest relates to May.$)$

f$.$ New refrigerating equipment costing $$9\mathrm{.}600$ will be purchased for cash during May.

g$.$ During May, the company will borraw $$23,400$ from Its bank by giving a new note payable to the bank for that amount. The new note will be due in one year

Required:

Calculate the expected cash collections from customers for May.

$2$ Calculate the expected cash disbursements for merchandise purchases for May.

Prepare a cash budget for May.

Prepare a budgeted Income statement for May.

Prepare a budgeted balance sheet as of May $31.$

Complete this question by entering your answers in the tabs below.

$\backslash$table$[[$Rea $5$