Minden Company is a wholesale distributor of premium European chocolates. The company's balance sheet as of April 30 is given below: 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 Required: For May: The company is in the process of preparing a budget for May and assembled the following data: a. Sales are budgeted at $247,000 for May. Of these sales, $74,100 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 are 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 $172,000 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 supplie paid during May. c. The May 31 inventory balance is budgeted at $58,500. d. Selling and administrative expenses for May are budgeted at $87,600, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $6,850 for the month. e. The note payable on the April 30 balance sheet will be paid during May, with $385 in interest. (All of the interest relates to May.) f. New refrigerating equipment costing $13,400 will be purchased for cash during May. g. During May, the company will borrow $22,900 from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year. $ 14,500 72,750 31,750 209,000 $ 328,000 Required 1 and 2 $ 69,500 16,000 180,000 62,500 $ 328,000 1. Calculate the expected cash collections from customers. 2. Calculate the expected cash disbursements for merchandise purchases. 3. Prepare a cash budget. 4. Prepare a budgeted income statement. 5. Prepare an end-of-month budgeted balance sheet. Complete this question by entering your answers in the tabs below. Required 3 Required 4 Required 5 1. Calculate the expected cash collections from customers for May. 2. Calculate the expected cash disbursements for merchandise purchases for May.

On March 1 of the current year, Spicer Corporation compiled information to prepare a cash budget for March, April, and May. All of the company's sales are made on account. The following information has been provided by Spicer's management. Month January February March April May Credit Sales $ 300,000 (actual) 400,000 (actual) 559,000 (estimated) 556,000 (estimated) 800,000 (estimated) The company's collection activity on credit sales historically has been as follows. Collections in the month of the sale Collections one month after the sale. Collections two months after the sale Uncollectible accounts. 50% 30 Cash balance on March 31 Cash balance on April 30 Cash balance on May 31 15 5 Spicer's total cash expenditures for March, April, and May have been estimated at $1.200,000 (an average of $400.000 per month). Its cash balance on March 1 of the current year is $500,000. No financing or investing activities are anticipated during the second quarter. Compute Spicer's budgeted cash…

On March 1 of the current year, Spicer Corporation compiled information to prepare a cash budget for March, April, and May. All of the company's sales are made on account. The following information has been provided by Spicer's management. Month Credit Sales January $ 300,000 (actual) February 400,000 (actual) March 629,000 (estimated) April 571,000 (estimated) May 800,000 (estimated) The company's collection activity on credit sales historically has been as follows. Collections in the month of the sale 50 % Collections one month after the sale 30 Collections two months after the sale 15 Uncollectible accounts 5 Spicer's total cash expenditures for March, April, and May have been estimated at $1,200,000 (an average of $400, 000 per month). Its cash balance on March 1 of the current year is $500,000. No financing or investing activities are anticipated during the second quarter. Compute Spicer's budgeted cash balance at the ends of March, April, and May.

Prepare the following budgets for the months of April, May, and June: 1. Sales budget. 2. Production budget.3. Direct materials budget. The management of Zigby Manufacturing prepared the following balance sheet for March 31.  ZIGBY MANUFACTURING Balance Sheet March 31 Assets     Liabilities and Equity     Cash   $ 65,000 Liabilities     Accounts receivable   399,000 Accounts payable $ 204,500   Raw materials inventory   90,200 Loan payable 27,000   Finished goods inventory   308,028 Long-term note payable 500,000 $ 731,500 Equipment $ 630,000   Equity     Less: Accumulated depreciation 165,000 465,000 Common stock 350,000         Retained earnings 245,728 595,728 Total assets   $ 1,327,228 Total liabilities and equity   $ 1,327,228  To prepare a master budget for April, May, and June, management gathers the following information.  Sales for March total 22,800 units. Budgeted sales in units follow: April, 22,800; May, 16,000; June, 23,000; and July, 22,800.…

The management accountant at Miller Merchandising & More, Odail Russell is in the process of preparing the cash budget for the business for the fourth quarter of 2021. It is customary for the business to borrow money during this quarter. Extracts from the sales and purchases budgets are as follows: Month Cash Sales Sales on account Purchase August September October November December $85[m1] ,000 $70,000 $88,550 $77,160 $174,870 $640,000 $550,000 $600,000 $800,000 $500,000 $420,000 $550,000 $500,000 $600,000 $450,000 An analysis of the records shows that trade receivables are settled according to the following credit pattern, in accordance with the credit terms 4/30, n90:               50% in the month of sale             30% in the first month following the sale             20% in the second month following the sale Expected purchases include monthly cash purchases of 5%. All other purchases are on account. Accounts payable are settled as follows, in…

A Company is preparing a cash budget for June The company has $83,750 cash at the beginning of June and anticipates $102,930 in cash receipts and $116,870 in cash disbursements during June. This company has an agreement with its bank to maintain a cash balance of at least $81 250. As of May 31. the company owes $30,000 to the bank To maintain the $81.250 required balance, during June the company must O Borrow $11 440 O Repay $13,940 O Borrow $30 000 Repay $30,000 O Repay $11,440

The management accountant at Miller Merchandising & More, Odail Russell is in the process of preparing the cash budget for the business for the fourth quarter of 2021. It is customary for the business to borrow money during this quarter. Extracts from the sales and purchases budgets are as follows:     Cash Sales   Month Sales On Account Purchases         August $85,000 $640,000 $420,000 September $70,000 $550,000 $550,000 October $88,550 $600,000 $500,000 November $77,160 $800,000 $600,000 December $174,870 $500,000 $450,000   An analysis of the records shows that trade receivables are settled according to the following credit pattern, in accordance with the credit terms 4/30, n90:   50% in the month of sale 30% in the first month following the sale 20% in the second month following the sale   2) Expected purchases include monthly cash purchases of 5%. All other purchases are on account. Accounts…

The management accountant at Miller Merchandising & More, Odail Russell is in the process of preparing the cash budget for the business for the fourth quarter of 2021. It is customary for the business to borrow money during this quarter. Extracts from the sales and purchases budgets are as follows:     Cash Sales   Month Sales On Account Purchases         August $85,000 $640,000 $420,000 September $70,000 $550,000 $550,000 October $88,550 $600,000 $500,000 November $77,160 $800,000 $600,000 December $174,870 $500,000 $450,000   An analysis of the records shows that trade receivables are settled according to the following credit pattern, in accordance with the credit terms 4/30, n90:   50% in the month of sale 30% in the first month following the sale 20% in the second month following the sale   Expected purchases include monthly cash purchases of 5%. All other purchases are on account. Accounts…