Sales are budgeted at 280000 for may of these sales 60000

Reference no: EM13597662

Minden Company is a wholesale distributor of premium European chocolates. The company's balance sheet as of April 30 is given below:

Minden Company
Balance Sheet
April 30

Assets

Cash $9,900
Accounts receivable 66,000
Inventory 33,000
Buildings and equipment, net of depreciation 551,100
Total assets $660,000

Liabilities and Stockholders' Equity

Accounts payable $79,200
Note payable 14,520
Capital stock, no par 487,080
Retained earnings 79,200
Total liabilities and stockholders' equity $660,000

The company is in the process of preparing budget data for May. A number of budget items have already been prepared, as stated below:

a.Sales are budgeted at $280,000 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.

b.Purchases of inventory are expected to total $198,000 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.

Reference no: EM13597662

Questions Cloud

From the account balances listed below prepare a schedule : from the account balances listed below prepare a schedule of cost of goods manufactured for sampson manufacturing

There are many parts to an hr department not just for the : there are many parts to an hr department not just for the hiring process. theres the benefits office disability

St marks hospital contains 450 beds the average occupancy : st. marks hospital contains 450 beds. the average occupancy rate is 80 per month. in other words on average 80 of the

Beginning inventory amounted to 1000 units this period 4500 : beginning inventory amounted to 1000 units. this period 4500 units were started and completed. at the end of the period

Sales are budgeted at 280000 for may of these sales 60000 : minden company is a wholesale distributor of premium european chocolates. the companys balance sheet as of april 30 is

Comparing borrowing costs stephens security has two : comparing borrowing costs stephens security has two financing alternatives1 a publicly placed 50 million bond issue.

Ed an employee of the natural color company suffered from a : ed an employee of the natural color company suffered from a rare disease that was very expensive to treat. the local

For 20x2 the selling price per lamp will be 4500 what is : big al is about to begin work on the budget for 20x2 and they have requested that you prepare an analysis based on the

Donald was killed in an accident while he was on the job in : donald was killed in an accident while he was on the job in 2010. his employer had provided donald with group term life

User Account

All Pages