Budgeted Balance Sheet May 31 Assets Cash Total assets $ 0 Liabilities and Stockholders' Equity Total liabilities and stockholders' equity A 0 Minden Company is a wholesale distributor of premium European chocolates. The company's balance sheet as of April 30 is given below: 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 Common stock Retained earnings Total liabilities and stockholders' equity $ 17,200 58,000 48,250 204,000 $ 327,450 1 $ 67,000 16,200 180,000 64,250 $ 327,450 The company is in the process of preparing a budget for May and has assembled the following data: Prepare a budgeted income statement for May. Minden Company Budgeted Income Statement For the Month of May Sales $ 253,000 253,000 Cost of goods sold Gross margin Beginning inventory Net operating income Purchases 140,000 X x 113,000 140,000 X $ (27,000) Net income a Sales are budgeted at $253,000 for May. Of these sales, $75,900 will be for cash; 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 April 30 accounts receivable will be collected in May. b. Inventory purchases are expected to total $140,000 during May. These purchases will all be on account. Forty percent of all purchases are paid for in the month of purchase the remainder are paid in the following month. All of the April 30 accounts payable to suppliers will be paid during May, C. The May 31 Inventory balance is budgeted at $47,000, d Selling and administrative expenses for May are budgeted at $93,000, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $2,850 for the month. e. New refrigerating equipment costing $11,100 will be purchased for cash during May f. The note payable on the April 30 balance sheet will be paid during May, with $300 in interest. (All of the interest relates to May.) g. During May, the company will borrow $25,400 from its bank by giving a new note payable to the bank for that amount The new note will be due in one year