Forty percent of all purchases are paid for in the month of purchase the

Forty percent of all purchases are paid for in the

This preview shows page 1 - 3 out of 3 pages.

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 $44,500. d. Selling and administrative expenses for May are budgeted at $81,900, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $6,450 for the month. e. The note payable on the April 30 balance sheet will be paid during May, with $140 in interest. (All of the interest relates to May.) f. New refrigerating equipment costing $9,600 will be purchased for cash during May. g. During May, the company will borrow $23,400 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-a. Prepare a schedule of expected cash collections from sales and a schedule of expected cash disbursements for merchandise purchases..
Image of page 1
1-b. Prepare a cash budget for May. (Cash deficiency, repayments and interest should be indicated by a minus sign.)
Image of page 2
2. Prepare a budgeted income statement for May. 3. Prepare a budgeted balance sheet as of May 31.
Image of page 3

You've reached the end of your free preview.

Want to read all 3 pages?

  • Fall '14
  • AyeshaIqbal
  • Balance Sheet, budgeted income statement, Budgeted Balance Sheet, Minden Company

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes