value 20.00 points Minden Company is a wholesale distributor of premium European
ID: 2545953 • Letter: V
Question
value 20.00 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 Inventory Buildings and equipment, net of depreciation $ 14,500 72,750 31,750 209,000 Total assets 328,000 Liabilities and Stockholders' Equity Accounts payable $ 69,500 Note payable Common stock 180,000 62,500 Retained eamings Total tiabilities and stockholders' equity 328,000 The company is in the process of preparing a budget for May and nas assembled the following data a Sales are budgeted at $247 000 for May Of these sales $74,100 will be for cash the remainder will be crean sales One-half of a month's credin sales are colected in the month the sales are made, and the emainder is collected in the tollowing month All of the Apri 30 accounts recervabie wli be collected in b Puichases of inventory are expected to total $172.000 during May These purchases wa all be on account. Forty percent of ail purchases are paid for in the monh of purchase the remainder are paid n the month Al of the April 30 accounts payable to supplers wil be paid during May c Seling and administrative expenses tor May are buogeted at $87 609 exclusive of depreciation These at 558 300 payable on the Apni s0 belance sheet wil be pac curing tay with s3e5 manterest All ot the IDExplanation / Answer
Schedule of expected cash collections Cash Sales - May Collections On accounts Receivables 74100 April 30 balance 72750 May sales 86450 Total Cash Receipts 233300 Schedule of expected cash disbursments April 30 accounts payable balance 69500 May Purchase 68800 Total Cash Payaments 138300 Minden Company Cash Budget For the month of May Beginning cash Balance 14500 Add: Collections from customers 233300 Total Cash Available 247800 Less Cash Disbursments Purchse of inventory 138300 Selling and administrative expense 87600 Purchase of equipment 13400 Total Cash Disbursments 239300 Excess of cash available over disbursments 8500 Financing Borrowing Note 22900 Repaying Note -16000 Interest 385 Total Financing 7285 Ending Cash Balance 15785 Minden Company Budgeted Income Statement For the month of May Sales 247000 Cost of goods sold Beginning Inventory 31750 Purchases 172000 Goods available for sale 203750 Ending Inventory 58500 Cost of goods sold 145250 Gross Margin 101750 Selling and administrative Expense (87600+6850) 94450 Net Operating Income 7300 Interest Expense 385 Net Income 7685 Minden Company Balance Sheet For the month of May Assets Cash 15785 Accounts Receivable 86450 Inventory 58500 Buildings and equipment , net of dep (209000+13400-6850) 215550 Total Assets 376285 Liabilities and Stockholder's Equity Accounts Payable (172000*.6) 103200 Note Payable 22900 Common stock 180000 Retained Earnnings (62500+7685) 70185 Total Liabilities 376285 1-a. Schedule of cash receipts: Collections on account receivable for May sales = (247000-74100) = 50% × $172,900 = $86,450
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.