Student Name: DeVante Edmonds Class: Problem 07-18 Requirement 1: MINDEN COMPANY Schedule of cash receipts: Cash sales-May

Collections on accounts receivable: April 30 balance May sales Total cash receipts Schedule of cash payments for purchases: April 30 accounts payable balance May purchases Total cash payments

60,000

54,000 70,000 $ 184,000 Correct! $ 63,000 48,000 $ 111,000 Correct!

MINDEN COMPANY Cash Budget For the Month of May Cash balance, beginning Add receipts from customers Total cash available Less disbursements: Purchase of inventory Selling and administrative expenses Purchases of equipment Total cash disbursements Excess of receipts over disbursements Financing: Borrowings-note Repayments-note Interest Total financing Cash balance, ending $ 9,000 184,000 193,000 111,000 72,000 6,500 189,500 3,500 20,000 (14,500) (100) 5,400 $ 8,900 Correct!

Student Name: DeVante Edmonds Class: Problem 07-18

Requirement 2: MINDEN COMPANY Budgeted Income Statement For the Month of May Sales Cost of goods sold: Beginning inventory Add purchases Goods available for sale Ending inventory Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income $20,000 $30,000 120,000 150,000 40,000 110,000 90,000 74,000 16,000 100 $15,900 Correct!

Requirement 3: MINDEN COMPANY Budgeted Balance Sheet May 31 Assets Cash Accounts receivable Inventory Plant and equipment, net of depreciation Total assets Liabilities and Equity Accounts payable Note payable Capital stock Retained earnings Total liabilities and equity

$8,900 70,000 40,000 211,500 $330,400

$72,000 20,000 180,000 58,400 $330,400 Correct!

Given Data P07-18: MINDEN COMPANY Balance Sheet April 30 Assets Cash Accounts receivable Inventory Buildings and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Note payable Capital stock, no par Retained earnings Total liabilities and stockholders' equity Budgeted Data relating to May: Budgeted sales Budgeted sales in cash (remainder credit) Percent of credit sales collected in same month Expected inventory purchases during May Purchases paid for in cash in month purchased May accounts payable paid in June Budgeted inventory balance, May 31 Budgeted selling and admin. expenses, May 31 Budgeted depreciation, May 31 Existing note payable paid in May Interest expense for May Equipment purchases in May New note $ 200,000 $ 60,000 50% $ 120,000 40% 100% $ 40,000 $ 72,000 $ 2,000 100% $ 100 $ 6,500 $ 20,000

9,000 54,000 30,000 207,000 $ 300,000

$ 63,000 14,500 180,000 42,500 $ 300,000

Student Name: Class: Problem 07-22 WESTEX PRODUCTS

Requirement 1a: Schedule of expected cash collections Next Year's Quarter Second Third

First Current year - Fourth quarter sales: Next year - First quarter sales: Next year - Second quarter sales: Next year - Third quarter sales: Next year - Fourth quarter sales: Total cash collections

Fourth

Total

Requirement 1b: Schedule of expected cash disbursements for merchandise purchases for next year Next Year's Quarter Second Third

First Current year - Fourth quarter purchases: Next year - First quarter purchases: Next year - Second quarter purchases: Next year - Third quarter purchases: Next year - Fourth quarter purchases: Total cash payments

Fourth

Total

Requirement 2: Budgeted selling and administrative expenses for next year Quarter Second Third

First Budgeted sales Variable expense rate Variable expenses Fixed expenses Total expenses Less depreciation Cash disbursements

Fourth

Year

Requirement 3: Cash budget for next year Quarter Second Third

First Cash balance, beginning Add collections from sales Total cash available Less disbursements: Merchandise purchases Selling and administrative expenses Dividends Land Total disbursements Excess (deficiency) of receipts over disbursements Financing: Borrowings Repayments Interest Total financing Cash balance, ending

Fourth

Year

Given Data P07-22: WESTEX PRODUCTS Budgeted Sales and Merchandise Purchases:
Merchandise Purchases $ $ $ $ $ 126,000 186,000 246,000 305,000 126,000

Sales

Current year Fourth quarter actual Next year First quarter estimated Second quarter estimated Third quarter estimated Fourth quarter estimated

$ $ $ $ $

200,000 300,000 400,000 500,000 200,000

Additional information: Percentage of sales collected in same quarter Percentage of sales collected in quarter following sales Percentage of sales deemed uncollectible Percentage of merchandise purchases paid in same quarter Percentage of merchandise purchases pain in following quarter Budgeted quarterly operating expenses for next year plus percentage of sales Amount of depreciation budgeted each quarter Dividends to be paid each quarter Cash purchase of land in second quarter Cash purchase of land in third quarter Cash account balance at end of current year Bank loan borrowing increments Maximum loan balance allowed Interest rate per quarter on bank loans Current outstanding loan balance

$ $ $ $ $ $ $ $ $

65% 33% 2% 80% 20% 50,000 15% 20,000 10,000 75,000 48,000 10,000 1,000 100,000 2.5% -