Problem-solving 1: Cash Budget; Income Statement; Balance SheetMinden Company is a wholesale distributor of premium European chocolates. The company's balancesheet as of April 30 is given below:Minden CompanyBalance SheetApril 30AssetsCashAccounts receivableInventoryBuildings and equipment, net of depreciation.Total assetsf.g.Liabilities and Stockholders' EquityAccounts payableNote payableCommon stockRetained earningsTotal liabilities and stockholders' equity$ 9,00054.00030,000207,000$300,000$ 63,00014,500180,00042,500$300,000The company is in the process of preparing a budget for May and has assembled the following data:a. Sales are budgeted at $200,000 for May. Of these sales, $60,000 will be for cash; the remainder willbe credit sales. One-half of a month's credit sales are collected in the month the sales are made, andthe remainder is collected in the following month. All of the April 30 accounts receivable will becollected in May.b. Purchases of inventory are expected to total $120,000 during May. These purchases will all be onaccount. Forty percent of all purchases are paid for in the month of purchase; the remainder are paidin 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.C.d. 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 ofthe 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 thebank for that amount. The new note will be due in one year.Required:1.Prepare a cash budget for May. Support your budget with a schedule of expected cash collections fromsales and a schedule of expected cash disbursements for merchandise purchases.2.3.Prepare a budgeted income statement for May. Use the absorption costing income statement format asshown in Schedule 9.Prepare a budgeted balance sheet as of May 31.

A cash budget helps in predicting expected cash inflows and outflows for the future period. If a…

Required: 1. Prepare a cash budget for May. Support your budget with a schedule of expected cash collections from sales and a schedule of expected cash disbursements for merchandise purchases. 2. Prepare a budgeted income statement for May. Use the absorption costing income statement format as shown in Schedule 9. 3. Prepare a budgeted balance sheet as of May 31.

Required: 1. Prepare a cash budget for May. Support your budget with a schedule of expected cash collections from sales and a schedule of expected cash disbursements for merchandise purchases. 2. Prepare a budgeted income statement for May. Use the absorption costing income statement format as shown in Schedule 9. 3. Prepare a budgeted balance sheet as of May 31.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter15: Financial Statements And Year-end Accounting For A Merchandising Business

Section: Chapter Questions

Problem 4SEA: FINANCIAL RATIOS Based on the financial statements for Jackson Enterprises (income statement,...

See similar textbooks

Similar questions

FINANCIAL RATIOS Use the work sheet and financial statements prepared in Problem 15-8A. All sales are credit sales. The Accounts Receivable balance on January 1,20--, was 3,800. REQUIRED Prepare the following financial ratios: (a) Working capital (b) Current ratio (c) Quick ratio (d) Return on owners equity (e) Accounts receivable turnover and average number of days required to collect receivables (f) Inventory turnover and average number of days required to sell inventory
FINANCIAL RATIOS Based on the financial statements for Jackson Enterprises (income statement, statement of owners equity, and balance sheet) shown on pages 596597, prepare the following financial ratios. All sales are credit sales. The Accounts Receivable balance on January 1, 20--, was 21,600. 1. Working capital 2. Current ratio 3. Quick ratio 4. Return on owners equity 5. Accounts receivable turnover and average number of days required to collect receivables 6. Inventory turnover and average number of days required to sell inventory
FINANCIAL RATIOS Based on the financial statements foe Jackson Enterprises (income statement, statement of owners equity, and balance sheet) shown on pages 598599, prepare the following financial ratios. All sales are credit sales. The Accounts Receivable balance on January 1, 20--, was 21,600. 1. Working capital 2. Current ratio 3. Quick ratio 4. Return on owners equity 5. Accounts receivable turnover and average number of days required to collect receivables 6. Inventory turnover and average number of days required to sell inventory
Allowance method Using transactions listed in £6-S. indicate the effects of each transaction on the liquidity metric days’ sales in receivables and profiability metric return on sales.
Financial Statement Analysis The financial statements for Nike, Inc., are presented in Appendix C at the end of the text. The following additional information (in thousands) is available: Instructions 1. Determine the following measures for the fiscal years ended May 31, 2013 (fiscal 2012), and May 31, 2012 (fiscal 2011), rounding to one decimal place. a. Working capital b. Current ratio c. Quick ratio d. Accounts receivable turnover e. Number of days sales in receivables f. Inventory turnover g. Number of days sales in inventory h. Ratio of liabilities to stockholders equity i. Ratio of sales to assets j. Rate earned on total assets, assuming interest expense is 23 million for the year ending May 31, 2013, and 31 million for the year ending May 31, 2012 k. Rate earned on common stockholders equity l. Price-earnings ratio, assuming that the market price was 61.66 per share on May 31, 2013, and 53.10 per share on May 31, 2012 m. Percentage relationship of net income to sales 2. What conclusions can be drawn from these analyses?
DIRECTIONS: Using these data from Rollaird Company's comparative balance sheets, perform a vertical analysis. Use Ch. 13, "Financial Analysis: The Big Picture," as guidance. Accounts Receivable Inventory Total Assets Dec. 31, 2022 460,000 780,000 3,164,000 Example: Dec. 31, 2021 NOTE: When entering your numbers, use whole numbers in the equation, and 1 decimal point for the answer, as seen in the example below. The text box will highlight red if incorrect after clicking the Submit button (bottom right corner). Accounts Receivable 2022 400,000 650,000 2,800,000 30000 ·I· 500000 = = 6.0 % %
DIRECTIONS: Using these data from Rollaird Company's comparative balance sheets, perform a vertical analysis. Use Ch. 13, "Financial Analysis: The Big Picture," as guidance. Accounts Receivable Inventory Total Assets Dec. 31, 2022 460,000 780,000 3,164,000 Example: Dec. 31, 2021 NOTE: When entering your numbers, use whole numbers in the equation, and 1 decimal point for the answer, as seen in the example below. The text box will highlight red if incorrect after clicking the Submit button (bottom right corner). Accounts Receivable 2022 400,000 650,000 2,800,000 30000 ÷ 500000 = 6.0 % %
Calculating Cycles Consider the following financial statement information for the Hop Corporation: Item Beginning Ending Inventory $16,284 $19,108 Accounts Receivable 11,219 13,973 Accounts Payable 13,960 16,676 Net Sales $219,320 Cost of Goods Sold 168,420 Calculate the operating and cash cycles. How do you interpret your answer?
Calculating Cycles Consider the following financial statement information for the Hop Corporation: Item Beginning Ending Inventory $16,284 $19,108 Accounts receivable 11,219 13,973 Accounts payable 13,960 16,676 Net Sales $219,320 Cost of Goods sold 168,420 Calculate the operating and cash cycles. How can you interprete your answer?
O DIRECTIONS: Using these data from Rollaird Company's comparative balance sheets, perform a horizontal analysis. Use Ch. 13, "Financial Analysis: The Big Picture," as guidance. Accounts Receivable Inventory Total Assets Dec. 31, 2022 Dec. 31, 2021 460,000 780,000 3,164,000 Example: NOTE: When entering your numbers, use whole numbers in the equation, and 1 decimal point for the answer, as seen in the example below. The text box will highlight red if incorrect after clicking the Submit button (bottom right corner). 400,000 650,000 2,800,000 Accounts Receivable 30000 ÷ •1• 500000 6.0 % olo % 010
Refer to the following selected financial information from WorkFit Corporation. Compute the company's acid-test ratio. Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Current liabilities Multiple Choice O O O 2.76. 0.91. 1.10. 2.67. 1.63. $ 42,250 59,180 79,500 115,000 9,700 111,000
O DIRECTIONS: Using these data from Rollaird Company's comparative balance sheets, perform a horizontal analysis. Use Ch. 13, "Financial Analysis: The Big Picture," as guidance. Accounts Receivable Inventory Total Assets Dec. 31, 2022 Dec. 31, 2021 460,000 780,000 3,164,000 Example: NOTE: When entering your numbers, use whole numbers in the equation, and 1 decimal point for the answer, as seen in the example below. The text box will highlight red if incorrect after clicking the Submit button (bottom right corner). 400,000 650,000 2,800,000 Accounts Receivable 30000 ÷ 500000 400000 || || 6.0 I % % Kay Partners and Your Business Model olo