AssetsCashAccounts receivableInventoryBuildings and equipment, net of depreciationTotal assetsMinden CompanyBalance SheetApril 30Liabilities and Stockholders' EquityAccounts payableNote payableCommon stockRetained earningsTotal liabilities and stockholders' equityThe 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 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 $189,000 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 $77,500.d. Selling and administrative expenses for May are budgeted at $93,600, exclusive of depreciation. These expenses will be paid incash. 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 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.Req 1 and 2Req 4Prepare a budgeted income statement for May.Minden CompanyBudgeted Income StatementFor the Month of MayComplete this question by entering your answers in the tabs below.Req 3$$ 11,10072,50037,500238,000$ 359,100Req 5$ 68,00019,400180,00091,700$ 359,100000 Prepare a budgeted balance sheet as of May 31.Minden CompanyBudgeted Balance SheetMay 31AssetsTotal assets$Liabilities and Stockholders' Equity19Total liabilities and stockholders' equity19$00

A financial statement called an income statement, also known as a profit and loss statement,…

Answered: 4. Prepare a budgeted income statement…

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

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 6PA: Budgeted income statement and balance sheet As a preliminary to requesting budget estimates of...

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