2. Prepas a budgetes neons statement ky Ney using the absorption conting insene

Question

2. Prepas a budgetes neons statement ky Ney using the absorption conting insene Nement format Required 1aPrasaros ochadia of ceported cash colloctions from color and a schoddo at aspectos coch distursements or merchandise purchases.. Minden Company Schedule of Expected Ceah Collections Minden Company Budgeted income Statemerit For the Month of May Minden Company is a wholesale distitutor o pretium European chocolates. The comperys balance sheet as of April 30 is given below: Minden Company Balance Sheet April 30 Assets Cash $ 18,700 Accounts receivable 70 250 Inventory Buildings and equipment, net of depreciation 230,000 Total assets $ 300,200 Collections on account recevable Liabilities and Stockholders' Equity Accounts payable Note payable Common stock Retained eamings Total liabilities and stockholders equty $ 72.250 180.000 94.250 $ 360,200 Minden Company Schedule of Expected Cash Disbursements April 30 accounts payetle balance May purchanas Total cash payments a 6- |- Q Q ÔL 6 A O. Q & © O Search 3. Propera a budjoitos baloncestontos of Noy 31. 1-. Prepare a cash batper for Ny Cash feticierneypayments and interest should be indicated by a minus sign) Minden Company Budgeted Balance sheet Minden Company Cash flurgrt. For the Month of May Beginning osh talans The company is in the process of preparing a buciget for May and has assembled the following data: a. Sales are budgeted at $214.000 kor May, or these sales, $64,200 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 wil be collected in May. b. Purchases of inventory are expected to total $122,000 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. d. The May 31 inventory balance is budgeted at $47,500. d. Selling and administrative expenses for May are budgestod at $85, 500, oxclusive of depreciation. These expenses will be paid in cash. Depreciation is bucigeted at $2,050 for the month. e. The note payable on the April 30 balance sheet will be paid during May, with $390 in interest (All of the interest relates to May) 1. New refrigerating equipment costing S16,300 will be purchased for cash during May. g. During May, the company wil borow $24,500 from its bank by giving a new nole payable to the bank for that amount. The new note will be due in one year. Total lists and sockheders'auty Ending cash balans

Explanation / Answer

1-a. Schedule of expected cash collections

Schedule of expected cash disbursements

1-b. Cash budget

2. Budgeted Income Statement

3. Budgeted Balance Sheet

Cash sales - May $64200 Collections on account receivables: April 30 balances 70250 May sales 74900 Total cash receipts $209350

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