Hw8 Assignments: ACG 2071-CRx ezto.mheducation.com/hm.tpx Minden Company is a wh

Question

Hw8 Assignments: ACG 2071-CRx ezto.mheducation.com/hm.tpx 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 S 9,200 76,250 49,750 228,000 Total assets $363,200 Liabilities and Stockholders' Equity Accounts payable Note payable Common stock Retained eanings $ 63,750 23,900 180,000 95,550 Total liabilities and stockholders' equity $ 363.200 The company is in the process of preparing a budget for May and has assembled the following data: a. Sales are budgeted at $227,000 for May. Of these sales, $68,100 will be for cash; the remainder will be credit sales. One-half of a month's credi remainder is collected in the following month, All of the April 30 accounts receivable will be collected in May t sales are collected in the month the sales are made, and the b. Purchases of inventory are expected to total $159.000 during May. These purchases will all be on account. Forty percent the following month. All of the April 30 accounts payable to suppliers will be paid durng May of all purchases are paid for in the month of purchase, the remainder are paid in administrative expenses for May are budgeted at $79,500, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $6.000 for the month e·The note payable on the Apri 30 baarce sheet will be paid during May, with S105 n interest (AI of the interest relates to May) t. New refrigerating equipment costing $11,800 will be purchased for cash during May g During May, the company will borrow $25,100 from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year RaPredare a schedudle of expected cash colections from ssies anda schdule of axpeched cash Cash sales -May

Explanation / Answer

Required Budgets are as prepared below:

Minden Company Schedule of expected Cash collections For the Month ended May 31 Month Particulars May Cash Sales May 68,100 Collections on Accounts Receivable April 30 balance 76,250 May Sales 79,450 Total cash Receipts 223,800

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.