Minden CompanyBalance SheetApril 30AssetsCashAccounts receivableInventoryBuildings and equipment, net of depreciationTotal assetsLiabilities and Stockholders' EquityAccounts payableNote payableCommon stockRetained earningsTotal liabilities and stockholders' equity$ 12,70066,50048,500229,000$ 356,700$ 67,50019,100180,00090,100$ 356,700The company is in the process of preparing a budget for May and has assembled the following data:a. Sales are budgeted at $262,000 for May. Of these sales, $78,600 will be for cash; the remainder will be credit sales. One-half of amonth's credit sales are collected in the month the sales are made, and the remainder is collected in the following month. All of theApril 30 accounts receivable will be collected in May.b. Purchases of inventory are expected to total $196,000 during May. These purchases will all be on account. Forty percent of allpurchases are paid for in the month of purchase; the remainder are paid in the following month. All of the April 30 accounts payableto suppliers will be paid during May.c. The May 31 inventory balance is budgeted at $84,000.d. Selling and administrative expenses for May are budgeted at $87,300, exclusive of depreciation. These expenses will be paid incash. Depreciation is budgeted at $6,400 for the month.e. The note payable on the April 30 balance sheet will be paid during May, with $550 in interest. (All of the interest relates to May.)f. New refrigerating equipment costing $13,000 will be purchased for cash during May.g. During May, the company will borrow $28,900 from its bank by giving a new note payable to the bank for that amount. The newnote 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.

Budget is a financial document prepared for a future period with estimated data. It shows the…

Assets Cash Minden Company Balance Sheet April 30 Accounts receivable Inventory Buildings and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Note payable Common stock Retained earnings Total liabilities and stockholders' equity $ 12,700 66,500 48,500 229,000 $ 356,700 $ 67,500 19,100 180,000 90,100 $ 356,700 The company is in the process of preparing a budget for May and has assembled the following data: a. Sales are budgeted at $262,000 for May. Of these sales, $78,600 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 fall

Assets Cash Minden Company Balance Sheet April 30 Accounts receivable Inventory Buildings and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Note payable Common stock Retained earnings Total liabilities and stockholders' equity $ 12,700 66,500 48,500 229,000 $ 356,700 $ 67,500 19,100 180,000 90,100 $ 356,700 The company is in the process of preparing a budget for May and has assembled the following data: a. Sales are budgeted at $262,000 for May. Of these sales, $78,600 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 fall

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Millen Corporation is a merchandiser that is preparing a master budget for the month of July. The company’s balance sheet as of June 30 is shown below: Millen Corporation Balance Sheet June 30 Assets Cash $ 120,000 Accounts receivable 166,000 Inventory 37,200 Plant and equipment, net of depreciation 554,800 Total assets $ 878,000 Liabilities and Stockholders’ Equity Accounts payable $ 93,000 Common stock 586,000 Retained earnings 199,000 Total liabilities and stockholders’ equity $ 878,000 Millen’s managers have made the following additional assumptions and estimates: Estimated sales for July and August are $310,000 and $330,000, respectively. Each month’s sales are 20% cash sales and 80% credit sales. Each month’s credit sales are collected 30% in the month of sale and 70% in the month following the sale. All of the accounts receivable at June 30 will be collected in July. Each month’s ending inventory must equal 20% of the…
ladeo Corp. has provided a part of its budget for the second quarter Apr $43,000 Jun $42,000 Cash collections Cash payments: Purchases of direct materials Operating expenses Capital expenditures The cash balance on April 1 is $13,000. Assume that there will be no financing transactions or costs during the quarter. Calculate the projected cash balance at the end of May OA. $56,000 OB. $54,900 O C. $87,500 OD. $32,600 May $43,000 4,500 7,000 0 7,000 5,600 20,000 5,000 4,500 10,000 HELHE
Please complete all the requirements
Castor Incorporated is preparing its master budget. Budgeted sales and cash payments for merchandise purchases for the next three months follow. April $ 30,000 June Budgeted Sales Cash payments for merchandise purchases May $ 42,000 $ 26,000 24,200 14,800 13,500 Sales are 80% cash and 20% on credit. Sales in March were $26,000. All credit sales are collected in the month following the sale. The March 31 balance sheet includes balances of $14,000 in cash and $4,000 in loans payable. A minimum cash balance of $14,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $12,000. Interest is 1% per month based on the beginning-of-the-month loan balance and is paid at each month-end. If a preliminary cash balance above $12,000 at month-end exists, loans are repaid from the excess. Expenses are paid in the month incurred and include sales commissions (10% of sales), shipping (4% of sales), office salaries ($7,000 per month), and rent ($5,000 per…
Required information Skip to question [The following information applies to the questions displayed below.] Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company’s balance sheet as of June 30th is shown below: Beech Corporation Balance Sheet June 30 Assets Cash $ 76,000 Accounts receivable 137,000 Inventory 86,100 Plant and equipment, net of depreciation 230,000 Total assets $ 529,100 Liabilities and Stockholders’ Equity Accounts payable $91,000 Common stock 312,000 Retained earnings 126,100 Total liabilities and stockholders’ equity $ 529,100 Beech’s managers have made the following additional assumptions and estimates: Estimated sales for July, August, September, and October will be $410,000, $430,000, $420,000, and $440,000, respectively. All sales are on credit and all credit sales are collected. Each month’s credit sales are collected 35% in the…
Required Information TES-417 Inc. is a retailer. Its accountants are preparing the company's 2nd quarter master budget. The company has the following balance sheet as of March 31. TES-417 Inc. Balance Sheet March 31 Assets Cash $ 82,000 Accounts receivable Inventory 52,500 Plant and equipment, net of depreciation 217,880 Total assets $ 488.500 Liabilities and Stockholders' Equity Accounts payable $ 78,000 Common stock 347,880 55,580 Retained earnings Total liabilities and stockholders' equity $ 480,500 TES-417 accountants have made the following estimates: 1. Sales for April, May, June, and July will be $280,000, $300,000, $290,000, and $310,000, respectively. 2. All sales are on credit. Each month's credit sales are collected 35% in the month of sale and 65% in the month following the sale. All of the accounts receivable at March 31 will be collected in April. 3. Each month's ending inventory must equal 25% of next month's cost of goods sold. The cost of goods sold is 75% of sales.…
Budgeted Income Statement and Balance SheetAs a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 20Y9, the following tentative trial balance as of December 31, 20Y8, is prepared by the Accounting Department of Mesa Publishing Co.: Cash$ 26,000Accounts Receivable23,800Finished Goods16,900Work in Process4,200Materials6,400Prepaid Expenses600Plant and Equipment82,000Accumulated Depreciation—Plant and Equipment$ 32,000Accounts Payable14,800Common Stock, $1.50 par30,000Retained Earnings83,100$159,900$159,900Factory output and sales for 20Y9 are expected to total 3,800 units of product, which are to be sold at $120 per unit. The quantities and costs of the inventories at December 31, 20Y9, are expected to remain unchanged from the balances at the beginning of the year.Budget estimates of manufacturing costs and operating expenses for the year are summarized as follows:Estimated Costs and ExpensesFixed(Total for…
please help with this genernal and admin expense budget
Required Information TES-417 Inc. is a retaller. Its accountants are preparing the company's 2nd quarter master budget. The company has the following balance sheet as of March 31. TES-417 Inc. Balance Sheet March 31 Assets Accounts receivable Inventory 129,880 52, see 217,000 Plant and equipment, net of depreciation. Total assets $ 480.500 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings 55, see Total liabilities and stockholders' equity $ 480.500 TES-417 accountants have made the following estimates: 1. Sales for April, May, June, and July will be $280,000, $300,000, $290,000, and $310,000, respectively. 2. All sales are on credit. Each month's credit sales are collected 35% in the month of sale and 65% in the month following the sale. All of the accounts receivable at March 31 will be collected in April. 3. Each month's ending inventory must equal 25% of next month's cost of goods sold. The cost of goods sold is 75% of sales. The company pays for…
Required Information TES-417 Inc. is a retailer. Its accountants are preparing the company's 2nd quarter master budget. The company has the following balance sheet as of March 31. TES-417 Inc. Balance Sheet March 31 Assets Cash $82,000 Accounts receivable Inventory 52,5ee 217,000 Plant and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable 78,000 Common stock 347.000 55,500 Retained earnings Total liabilities and stockholders' equity TES-417 accountants have made the following estimates: 1. Sales for April, May, June, and July will be $280,000, $300.000, $290,000, and $310,000, respectively. 2. All sales are on credit. Each month's credit sales are collected 35% in the month of sale and 65% in the month following the sale. All of the accounts receivable at March 31 will be collected in April. 3. Each month's ending inventory must equal 25% of next month's cost of goods sold. The cost of goods sold is 75% of sales. The company pays for 40%…
Knowledge Check 01 For the budget period ending December 31 of the current year, Aaron Corporation estimates its ending balances for cash as $4,000, accounts receivable as $16,000, finished goods Inventory as $12,000, and raw materials Inventory as $8,000. Invoices relating to raw materials in the amount of $14,000 are expected to be unpaid as of December 31. What is the amount of total current assets that will be reported on the budgeted balance sheet? O $20,000 O $26.000 O $32,000 O $40,000
Schedule of Cash Payments Select Physical Therapy Inc. is planning its cash payments for operations for the third quarter (July-September), 2017. The Accrued Expenses Payable balance on July 1 is $31,700. The budgeted expenses for the next three months are as follows: July August September Salaries $72,900 $88,800 $98,300 Utilities 6,000 6,700 7,900 Other operating expenses 55,400 60,400 66,500 Total $134,300 $155,900 $172,700 Other operating expenses include $4,000 of monthly depreciation expense and $900 of monthly insurance expense that was prepaid for the year on March 1 of the current year. Of the remaining expenses, 75% are paid in the month in which they are incurred, with the remainder paid in the following month. The Accrued Expenses Payable balance on July 1 relates to the expenses incurred in June. Prepare a schedule of cash payments for operations for July, August, and September. Select Physical Therapy Inc. Schedule of Cash Payments for Operations For the Three Months…