Maler Cash $13.500 38.500 loventory 40350 Total assets 202.000 $319,750 $67.750 Accounts payable Note payable Common stock $15.300 190,000 Retained earnings Total liabilities and stockholders' equity 16,200 $319,750 The company is in the process of preparing a budget for May and has assembled the following date Sales are budgeted at $263,000 for May. Of these sales, $78.900 will be for cash, the remainder will be credit sales. One-half of a th's credit sales o remainder is collected in the following month. All of the April 30 accounts receivable will be collected in May. Purchases of inventory are expected to total $193,000 during May. These purchases will all be on account Forty percent of all purchases are paid for in the mouth of purch, the following month. All of the April 30 accounts payable to suppliers will be paid during May The May 31 inventory balance is budgeted at $63,000. Selling and administrative expenses for May are budgeted at $73,200, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $4.650 Sor the k The note payable on the April 30 balance sheet will be paid during May, with $300 in interest. (All of the interest relates to May.) New refrigerating equipment costing $11.900 will be purchased for cash during May During May, the company will borrow $27,200 from its bank by giving a new note payable to the bank for that amount. The new note will be dise in one year. Required: Using the information provided, prepare the following: -The budgeted expected cash collections from customers for May The budgeted expected cash disbursements for merchandise purchases for May.
Maler Cash $13.500 38.500 loventory 40350 Total assets 202.000 $319,750 $67.750 Accounts payable Note payable Common stock $15.300 190,000 Retained earnings Total liabilities and stockholders' equity 16,200 $319,750 The company is in the process of preparing a budget for May and has assembled the following date Sales are budgeted at $263,000 for May. Of these sales, $78.900 will be for cash, the remainder will be credit sales. One-half of a th's credit sales o remainder is collected in the following month. All of the April 30 accounts receivable will be collected in May. Purchases of inventory are expected to total $193,000 during May. These purchases will all be on account Forty percent of all purchases are paid for in the mouth of purch, the following month. All of the April 30 accounts payable to suppliers will be paid during May The May 31 inventory balance is budgeted at $63,000. Selling and administrative expenses for May are budgeted at $73,200, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $4.650 Sor the k The note payable on the April 30 balance sheet will be paid during May, with $300 in interest. (All of the interest relates to May.) New refrigerating equipment costing $11.900 will be purchased for cash during May During May, the company will borrow $27,200 from its bank by giving a new note payable to the bank for that amount. The new note will be dise in one year. Required: Using the information provided, prepare the following: -The budgeted expected cash collections from customers for May The budgeted expected cash disbursements for merchandise purchases for May.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Transcribed Image Text:Sales Compr
April 30
Assets
Cash
Arcounts receivable
$13,500
Inventory
38,500
40-750
Buildings and equipment, net of depreciation
Total assets
202.000
$319,750
Accounts payable
Note payable
567.750
$15.500
Common stock
150,000
Retained earnings
36,200
Total Habilities and stockholders' equity
$319,756
The company is in the process of preparing a budget for May and has assembled the following date
Sales are budgeted at $263,000 for May. Of these sales, $78.900 will be for cash: the remainder will be credit sales. One-half of a moth's credit sales are allacial in the the s
remainder is collected in the following month. All of the April 30 accounts receivable will be collected in May
Purchases of inventory are expected to total $193,000 during May. These purchases will all be on account Forty percent of all purchases are paid for in the month of pchar, the
following month. All of the April 30 accounts payable to suppliers will be paid during May
The May 31 inventory balance is budgeted at $63,000.
Selling and administrative expenses for May are budgeted at $73,200, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $4.650 for the
The note payable on the April 30 balance sheet will be paid during May, with $300 in interest. (All of the interest relates to May.)
New refrigerating equipment costing $11.900 will be purchased for cash during May
During May, the company will borrow $27,200 from its bank by giving a new note payable to the bank for that amount. The new note will be dise in one year.
Required:
Using the information provided, prepare the following:
1. The budgeted expected cash collections from customers for May.,
H
2. The budgeted expected cash disbursements for merchandise purchases for May.
The cash budgeted for May
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