Noreen 2e Managerial Accounting 8-19 Answers - Problem...

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Problem 8-19(60 minutes)1. Schedule of cash receipts:Cash sales—May...........................................$ 60,000Collections on account receivable:April 30 balance..........................................54,000May sales (50% × $140,000)........................70,000Total cash receipts.........................................$184,000Schedule of cash payments for purchases:April 30 accounts payable balance...................$ 63,000May purchases (40% × $120,000)...................48,000Total cash payments......................................$111,000Minden CompanyCash BudgetFor the Month of MayCash balance, beginning................................$ 9,000Add receipts from customers (above)...............184,000Total cash available........................................193,000Less disbursements:Purchase of inventory (above)......................111,000Selling and administrative expenses..............72,000Purchases of equipment..............................6,500Total cash disbursements...............................189,500Excess of receipts over disbursements.............3,500Financing:Borrowing—note.........................................20,000Repayments—note......................................(14,500)Interest......................................................(100)Total financing..............................................5,400Cash balance, ending.....................................$8,900
Problem 8-19 (continued)2.Minden CompanyBudgeted Income StatementFor the Month of MaySales....................................................$200,000Cost of goods sold:

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