ance she the process of preparing a bud 42,500 and has assembled the following data budgeted at $220,000 for May Of these cases, 500.000 will be for cash, the remainder will be credit sales. Each month's collected 60% in the month of sale and 40% in the month following the sate, All of the April 30 accounts receivable ed in May of inventory are expected to total $120.000 during May These purchases will all be on account. The company pays for chandise purchases in the month of the purchase and the remaining 50% in the month following the purchase. All of 30 accounts payable to suppliers will be paid during May story balance is budgeted at $40.000 administrative expenses for May are budgeted at 572.000, exclusive of depreciation. These expenses will be paid in tion is budgeted at $2.000 for the month payable on the April 30 balance sheet will be paid during May, with $100 in interest. (All of the interest relates to May New refrigerating equipment costing $6.500 will be purchased for cash during May During Mary, 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 due in one year Required: 1. Calculate the expected cash collections for May. 2. Calculate the expected cash disbursements for merchandise purchases for May 3. Prepare a cash budget for May. 4. Prepare a budgeted income statement for May 5. Prepare a budgeted balance sheet as of May 31.