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4. Prepare a budgeted income statement for May. 5. Prepare a budgeted balance sheet as of May 31. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Reg 4 Req 5

4. Prepare a budgeted income statement for May. 5. Prepare a budgeted balance sheet as of May 31. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Reg 4 Req 5

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Assets Cash Accounts receivable Inventory Buildings and equipment, net of depreciation Total assets Minden Company Balance Sheet April 30 Liabilities and Stockholders' Equity Accounts payable Note payable Common stock Retained earnings Total liabilities and stockholders' equity The company is in the process of preparing a budget for May and has assembled the following data: a. Sales are budgeted at $255,000 for May. Of these sales, $76,500 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 will be collected in May. b. Purchases of inventory are expected to total $189,000 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. c. The May 31 inventory balance is budgeted at $77,500. d. Selling and administrative expenses for May are budgeted at $93,600, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $6,250 for the month. e. The note payable on the April 30 balance sheet will be paid during May, with $370 in interest. (All of the interest relates to May.) f. New refrigerating equipment costing $8,600 will be purchased for cash during May. g. During May, the company will borrow $29,500 from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year. Required: 1. Calculate the expected cash collections from customers for May. 2. Calculate the expected cash disbursements for merchandise purchases for May. 3. Prepare a cash budget for May. 4. Prepare a budgeted income statement for May. 5. Prepare a budgeted balance sheet as of May 31. Req 1 and 2 Req 4 Prepare a budgeted income statement for May. Minden Company Budgeted Income Statement For the Month of May Complete this question by entering your answers in the tabs below. Req 3 $ $ 11,100 72,500 37,500 238,000 $ 359,100 Req 5 $ 68,000 19,400 180,000 91,700 $ 359,100 0 0 0
Transcribed Image Text:Assets Cash Accounts receivable Inventory Buildings and equipment, net of depreciation Total assets Minden Company Balance Sheet April 30 Liabilities and Stockholders' Equity Accounts payable Note payable Common stock Retained earnings Total liabilities and stockholders' equity The company is in the process of preparing a budget for May and has assembled the following data: a. Sales are budgeted at $255,000 for May. Of these sales, $76,500 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 will be collected in May. b. Purchases of inventory are expected to total $189,000 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. c. The May 31 inventory balance is budgeted at $77,500. d. Selling and administrative expenses for May are budgeted at $93,600, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $6,250 for the month. e. The note payable on the April 30 balance sheet will be paid during May, with $370 in interest. (All of the interest relates to May.) f. New refrigerating equipment costing $8,600 will be purchased for cash during May. g. During May, the company will borrow $29,500 from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year. Required: 1. Calculate the expected cash collections from customers for May. 2. Calculate the expected cash disbursements for merchandise purchases for May. 3. Prepare a cash budget for May. 4. Prepare a budgeted income statement for May. 5. Prepare a budgeted balance sheet as of May 31. Req 1 and 2 Req 4 Prepare a budgeted income statement for May. Minden Company Budgeted Income Statement For the Month of May Complete this question by entering your answers in the tabs below. Req 3 $ $ 11,100 72,500 37,500 238,000 $ 359,100 Req 5 $ 68,000 19,400 180,000 91,700 $ 359,100 0 0 0
Prepare a budgeted balance sheet as of May 31. Minden Company Budgeted Balance Sheet May 31 Assets Total assets $ Liabilities and Stockholders' Equity 19 Total liabilities and stockholders' equity 19 $ 0 0
Transcribed Image Text:Prepare a budgeted balance sheet as of May 31. Minden Company Budgeted Balance Sheet May 31 Assets Total assets $ Liabilities and Stockholders' Equity 19 Total liabilities and stockholders' equity 19 $ 0 0
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