8 Graded Problems Saved Help Minden Company ls a wholesale distributor of premiu

Question

8 Graded Problems Saved Help Minden Company ls 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 Total assets $ 9,000 54,000 30,000 207,000 300,000 Liabilities and Stockholders Equity Accounts payable Note payable Common stock Retained earnings Total liabilities and stockholders' equity 63,000 14,500 180,000 300,000 The company is in the process of preparing a budget for May and has assembled the following data: a. Sales are budgeted at $200,000 for May. Of these sales, $60,000 will be for cash; the remainder will be credit sa 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 will be collected in May. entory are expected to total $120,000 during May These purchases will all be on adcount. Forty percent of all purchases are paid for in the month of purchase; the remainder are paid in the following month. All of the to suppliers will be paid during May. April 30 accounts payable The day 3d nmitoty blacnfor May are budgeted at $72,000 xclusive of depreciation. These expenses wll be d in d. Selling and administrative expenses for May are b cash, Depreciation is budgeted at $2,000 for the month. e. The note payable on the April 30 balance sheet will be paid during May f. New refrigerating equipment costing $6,500 will be purchased for cash during May g. During May, the company will borrow $20,000 from its bank by giving a new note 30 balance sheet will be paid during May, with $100 in interest (Al of the interest relates to May,) payable to the bank for that amount. The new note will be due in one year

Explanation / Answer

Requirement 1:

Requirement 2:

Requirement 3:

Requirement 4:

Cost of Goods Sold = Opening Inventory + Purchases - Closing Inventory

.................................= $30,000 + $120,000 - $40,000

.................................= $110,000

Requirement 5:

Statement of cash collections Particulars Amount Cash Sales $60,000 Cash for credit sale of may ($140,000 x 50%) $70,000 Collection of account receivable $54,000 Total Cash Collections $184,000

Related Questions

Navigate

• Browse (All)
• Browse 8
• Subjects

---

---

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