CASH BUDGET PROBLEM Milton Company is a chocolate wholesaler. The company presents the following information to the date of April 30: Cash ................................................ .. $ 9,000 Accounts receivable ........................ .. 54,000 Inventory .......................................... .. 30,000 Building and equipment, net ...... .. 207,000 Accounts payable ........................... $ 63,000 Note payable ... ........................... .. 14,500 Stock capital ........................... ... . 180,000 Retained earnings ... ..................... 42,500 The company is in the process of preparing the budget for the month of May. Below are a series of items to prepare the cash budget:

A. The sales budgeted for May are $ 200,000. Of that item , 30% is charged at the moment and the rest is credit sales. 50% of credit sales are collected in the month of sale and the remainder is charged in the following month. All accounts receivable as of April 30 are collected in May.

B. Inventory purchases are expected to be $ 120,000 in the month of May. They are all on credit. 40% of purchases are paid in the month of purchase, the remainder in the following month. All accounts payable as of April 30 are paid in May.

C. The inventory balance at May 31 budgeted is $ 40,000

D. The sales and administration expenses for May budgeted are $ 72,000. These expenses are paid in Cash. Depreciation is budgeted at $ 2,000 per month.

E The Note to Pay (Note Payable ) on April 30 will be paid in May, with an additional $ 100 of interest. 6 I buy a new equipment that costs $ 6,000 to be paid in cash in May.

F In May, he takes a loan for $ 20,000 from the Bank, signing a note that expires in one year. Requirements: Prepare a Cash Budget for the month of May. Support this Budget with the Schedule of Cash Collection from sales "and Shedule of Cash Disbursements "for merchandise purchases. Prepare an Income statement