ACCT 241 Week 8 Assignment Help 3 | American University
- american-university / ACCT 241
- 03 Aug 2019
- Price: $8
- Other / Other
ACCT 241 Week 8 Assignment Help 3 | American University
.
1.
Minden Company is a wholesale distributor of premium European
chocolates. The company’s balance sheet as of April 30 is given below:
|
Minden Company |
||
|
Assets |
||
|
Cash |
$ |
9,000 |
|
Accounts receivable |
|
54,000 |
|
Inventory |
|
30,000 |
|
Buildings and equipment, net of depreciation |
|
207,000 |
|
Total assets |
$ |
300,000 |
|
Liabilities
and Stockholders’ Equity |
||
|
Accounts payable |
$ |
63,000 |
|
Note payable |
|
14,500 |
|
Common stock |
|
180,000 |
|
Retained earnings |
|
42,500 |
|
Total liabilities and stockholders’ equity |
$ |
300,000 |
|
|
||
The company is in the process of preparing a budget for May and has
assembled the following data:
- 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.
- 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.
- The
May 31 inventory balance is budgeted at $40,000.
- 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.
- 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.)
- New
refrigerating equipment costing $6,500 will be purchased for cash during
May.
- 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.
Required:
1. Calculate the expected cash
collections 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.
2.
Minden Company is a wholesale distributor of premium
European chocolates. The company’s balance sheet as of April 30 is given below:
|
Minden Company |
||
|
Assets |
||
|
Cash |
$ |
9,000 |
|
Accounts receivable |
|
54,000 |
|
Inventory |
|
30,000 |
|
Buildings and equipment, net of depreciation |
|
207,000 |
|
Total assets |
$ |
300,000 |
|
Liabilities and Stockholders’ Equity |
||
|
Accounts payable |
$ |
63,000 |
|
Note payable |
|
14,500 |
|
Common stock |
|
180,000 |
|
Retained earnings |
|
42,500 |
|
Total liabilities and stockholders’ equity |
$ |
300,000 |
|
|
||
The company is in the process of preparing a budget
for May and has assembled the following data:
- Sales are budgeted at $220,000 for May. Of
these sales, $60,000 will be for cash; the remainder will be credit sales.
Each month’s credit sales are collected 60% in the month of sale and 40%
in the month following the sale. All of the April 30 accounts receivable
will be collected in May.
- Purchases of inventory are expected to total
$120,000 during May. These purchases will all be on account. The company
pays for 50% of its merchandise purchases in the month of the purchase and
the remaining 50% in the month following the purchase. All of the April 30
accounts payable to suppliers will be paid during May.
- The May 31 inventory balance is budgeted at
$40,000.
- 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.
- 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.)
- New refrigerating equipment costing $6,500 will
be purchased for cash during May.
- 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.
Required:
1. Calculate the expected cash collections 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.
USA 
India