Please explain proper steps by Step and Do Not Give Solution In Image Format ? And Fast Answering Please ? Req 1 and 2Required 3Prepare a budgeted income statement for May.Minden CompanyBudgeted Income StatementFor the Month of MayShow Transcribed TextRequired 4 Required 5Total assetsReq 1 and 2 Required 3 Required 4 Required 5Prepare a budgeted balance sheet as of May 31.Minden CompanyBudgeted Balance SheetMay 31AssetsLiabilities and Stockholders' EquityTotal liabilities and stockholders' equity Minden Company is a wholesale distributor of premium European chocolates. The company's balance sheet as of April 30 is givenbelow:AssetsCashAccounts receivableInventoryBuildings and equipment, net of depreciationTotal assetsLiabilities and Stockholders' EquityAccounts payableMinden CompanyBalance SheetApril 30Note payableCommon stockRetained earningsTotal liabilities and stockholders' equityThe company is in the process of preparing a budget for May and has assembled the following data:Show Transcribed Texta. Sales are budgeted at $200,000 for May. Of these sales, $60,000 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 $120,000 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 $40,000.d. Selling administrative expenses forcash. Depreciation is budgeted at $2,000 for the month.aregeted$72,000, exclusive of depreciationexpenses will be paid ine. The note payable on the April 30 balance sheet will be paid during May, with $100 in interest. (All of the interest relates to 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 new note payable to the bank for that amount. The newnote will be due in one year.Req 1 and 2Required 3 Required 4Required: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.Total cash collectionsTotal cash disbursementsComplete this question by entering your answers in the tabs below.Show Transcribed Text1. Calculate the expected cash collections from customers for May.2. Calculate the expected cash disbursements for merchandise purchases for May.Req 1 and 2 Required 3 Required 4 Required 5For the Month of MayBeginning cash balance.$9,00054,00030,000207,000$ 300,000Required 5Add collection from customersTotal cash availableLess cash disbursements:Purchase of inventorySelling and administrative expensesPurchases of equipmentTotal cash disbursementsExcess of cash available over disbursementsFinancing:Borrowing-noteRepayments-note$ 63,00014,500180,00042,500$ 300,000InterestTotal financingEnding cash balance< Req 1 and 23< Req 1 and 2ĆPrepare a cash budget for May. (Cash deficiency, repayments and interest should be indicated by a minus sign.)Minden CompanyCash BudgetSĈRequired 3 >Required 4 >

Cash budget estimates the amount of expected cash inflow and outflow during the period. Thus, it…

Minden Company is a wholesale distributor of premium European chocolates. The company's balance sheet as of April 30 is given below: 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 $ 9,000 54,000 30,000 207,000 $ 300,000 $ 63,000 14,500 180,000 42,500 $ 300,000 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 $200,000 for May. Of these sales, $60,000 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 $120,000 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 $40,000. d. Selling and administrative expenses for May are budgeted at $72,000, exclusive of depreciation. These expenses will be paid in 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, with $100 in interest. (All of the interest relates to 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 payable to the bank for that amount. The new note will be due in one year.

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q