5 10 10. BER Cosworth Po Che 5 2 Assets Cash 39,000 Accounts receivable 54.000 Inventory 30,000 Duildings and equipment, net of depreciation 207.000 Total assets $100,000 Llabilities and Stockholders Equity Accounts payable $ 63.000 Hote payable 14,500 Con Stock 100,00 Hetained earnings 42,500 Total liabilities and stockholders' equity $100,000 The company is in the process of preparing a budget for May and has assembled the following data bocs 00 Hint es a. Sales are budgeted at $200,000 for May of these sales, 560.000 wel be for case 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 Apr 30 accounts receivable will be collected in May b. Purchases of inventory are expected to total $120,000 during May These purchases wit all be on account Forty percent of an purchases are paid for in the month of purchase the remainder are paid in the following month. All of the Apel 30 accounts payable to suppliers will be during May The May 31 inventory balance is budgeted at $40.000 d. Selling and marvestrative expenses for May are budgeted at 572.000, exclusive of depreciation. These expenses wil be paid in cash Depreciation is budgeted at $2.000 for the month The note payable on the Apni 30 balance sheet will be paid during May, with $100 interest (All of the interest relates to May) New refrigerating equipment costing 56 500 will be purchased for con during May 9. Dunn May, the company will borrow $20,000 from its bank by giving a new note payable to the bank for that amount. The new note will be in one year Required: Calculate the expected cash collections from customers for May 2. Calculate the expected cashbursements for merchandise purchases for May Prepare a cash budget for May 4 Prepare a budgeted income statement for May 5. Prepare a budged balance sheets of May 1 Come this by entering answers in the taste