Answer:(1a) schedule of cash collected $221,800, schedule of cash disbursement for merchandise purchase $118,900 (1b) cash budget closing balance $19,260 (2) Net income $26,410 (3) Balance sheet Total Asset $364,510, Total Liabilities &Equity $364,510
Explanation:
Schedule of cash collected
Sales. 257,000
Less:Cash sales. 77,100
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Credit sales. 179,900
Cash collected in May
Credit sales( 50% ) 77,100
Account Receivable 54,750
May sales (179,900 × 50%) 89,950
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Total cash collected. 221,800
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Schedule of cash disbursements for merchandise
Cash paid for May purchases (121,000×40%) 48,400
Cash paid for April purchases. 70,500
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Total purchase payment for May. 118,900
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Cash Budget
Opening balance. 9,600
Add: Receipt
Collection from customers 221,800
Bank loan. 22,000
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Total cash available. 253,400
Less: Disbursements
Purchase payment 118,900
Selling Expenses. 83,700
Note payable. 18,100
Interest on Note payable 340
Purchase of refrigerating equipment 13,100
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Total Disbursement. 234,140
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Closing Balance. 19,260
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Minden company
Budgeted income statements for the month of may
Sales. 257,000
Cost of good sold
Beginning inventory 53,750
Add: purchases. 121,000
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Goods available for sale 174,750
Less: Ending inventory. 31,000
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Cost of good sold. 143,750
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Gross Margin. 113,250
Selling & Administrative Expenses
(83,700 + 2,800) 86,500
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Net operating income. 26,750
Less: interest expense. 340
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Net income. 26,410
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Budgeted Balance sheet
Asset
Cash. 19,260
Account Receivable 89,950
Inventory. 31,000
Building & Equipment
Net of Deprecation.
(214,000 + 13,100 - 2,800) 224,300
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Total Asset. 364,510
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Liabilities & Equity
Account Payable(121,000 × 60%) 72,600
Note payable. 22,000
Common Stock. 180,000
Retained Earnings( 63,500 + 26,410) 89,910
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Total Liabilities & Equity. 364,510
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