The following data for the month of May are part of the information being used to prepare the master budget for Hillman Sports Wholesalers: Planned cash balance, May 1 Sales..... Merchandise purchases Inventory increase. Payroll earned Payroll paid... Other expenses (payable in May) $ 60,000 800,000 500,000 20,000 95,000 88,000 41,000 2,000 6,000 250,000 9,000 240,000 520,000 Depreciation... Accrued taxes (payable in December) 3-month bank note: Principal due May 31 Interest payable due May 31 Accounts payable, May 1 (for merchandise purchases) Customer receivables, May 1 ($70,000 from March sales and $450,000 from April sales)... 

Assumptions: 

Accounts receivable: 50 percent is collected in the month of sale, 40 percent in the next month, and 10 percent in the second month after the sale. Accounts payable: 40 percent is paid in the month of purchase and 60 percent in the next month.

Required: 

Using the preceding information, prepare a cash budget showing expected cash receipts and disbursements and a pro forma income statement for the month of May.