PROBLEM 8-17 Cash Budget; Income Statement; Balance Sheet Minden Company is a wh

Question

PROBLEM 8-17 Cash Budget; Income Statement; Balance Sheet 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 9,000 54,000 30,000 ash Accounts receivable ...._....___ ....___. . .._ _ . . . _.. Buildings and equipment, net of depreciation 207,000 __ _ _ . . . . . . . . . . .. Liabilities and Stockholders' Equity Note payable 42,500 Total liabilities and stockholders' equity . .. . . .. _ . . .. . . ._. . . ..$300,000

Explanation / Answer

1 Cash receipts May Cash Sales    60000 Credit sales 140000 Budgeted Cash receipt May Cash Sales    60000 Accounts receivable 54000 May sales 70000 (140000*50%) Total collection 184000 2 Particulars May Accounts payable 63000 May purchase 48000 (120000*40%) Total payments 111000 Cash budget May Beginning cash balance 9000 Cash receipt 184000 Total 193000 Payments Material payments 111000 Selling and admin expense 72000 Equipment purchase 6500 Notes payable paid 14600 (14500+100) Total payments 204100 Excess /(defeciency) -11100 Financing Borrowing 20000 Repayment Interest Total financing 20000 Cash balance ending 8900

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