Hamza Almusailem ID: 202003145
Problem-Solving 1
1.
Minden company
Cash Budget for May
Particulars Amount
Cash balance 9,000
Collections from customers 210,000
Total cash (A) 219,000
Minus: Cash disbursement:
Purchases 123,000
Selling and admin expenses 72,000
Equipment 6,500
Total Cash disbursement (B) 201,500
Excess of cash available (C = A - B) 17,500
Financing:
Borrowing (note payable) 20,000
Repayment of notes payable balance of April
-14,500
30
Interest -100
Total financing (D) 54,00
Cash balance at the end 22,900
, 2.
Minden company
Budgeted Income statement
Particulars Amount
Sales 220,000
Minus: cost of goods sold 110,000
Gross Margin 110,000
Minus: Selling and admin expenses 72,000
Depreciation 2,000
Net operating income 36,000
Less: Interest expenses 100
Net Income 35,900
Cost of goods= Beg. Inventory + Purchases - End Inventory
30,000 + 120,000 - 40,000 = 110,000
Problem-Solving 1
1.
Minden company
Cash Budget for May
Particulars Amount
Cash balance 9,000
Collections from customers 210,000
Total cash (A) 219,000
Minus: Cash disbursement:
Purchases 123,000
Selling and admin expenses 72,000
Equipment 6,500
Total Cash disbursement (B) 201,500
Excess of cash available (C = A - B) 17,500
Financing:
Borrowing (note payable) 20,000
Repayment of notes payable balance of April
-14,500
30
Interest -100
Total financing (D) 54,00
Cash balance at the end 22,900
, 2.
Minden company
Budgeted Income statement
Particulars Amount
Sales 220,000
Minus: cost of goods sold 110,000
Gross Margin 110,000
Minus: Selling and admin expenses 72,000
Depreciation 2,000
Net operating income 36,000
Less: Interest expenses 100
Net Income 35,900
Cost of goods= Beg. Inventory + Purchases - End Inventory
30,000 + 120,000 - 40,000 = 110,000
