Chapter 7 PROBLEM 7-18A Cash Budget; Income Statement; Balance Sheet; Changing Assumptions LO7-2, L07-4, LO7-8, LO7-9, LO7-10] Refer to the data for Minden Company in Problem 7-17A. The company is considering making the follow- ing changes to the assumptions underlying its master budget: 1. Sales are budgeted for $220,000 for May. 2 Each month's credit sales are collected 60% in the month of sale and 40% in the month following the sale. 3. The company pays for 50% of its merchandise purchases in the month of the purchase and the remaining 50% in the month following the purchase. All other information from Problem 7-17A that is not mentioned above remains the same. Required: Using the new assumptions described above, complete the following requirements: 1. Prepare a cash budget for May. Support your budget with a schedule of expected cash collections from sales and a schedule of expected cash disbursements for merchandise purchases Prepare a budgeted income statement for May. Use the absorption costing income statement format as shown in Schedule 9 2. 4. Prepare a budgeted balance sheet as of May 3. Chapter 7 PROBLEM 7-18A Cash Budget; Income Statement; Balance Sheet; Changing Assumptions LO7-2, L07-4, LO7-8, LO7-9, LO7-10] Refer to the data for Minden Company in Problem 7-17A. The company is considering making the follow- ing changes to the assumptions underlying its master budget: 1. Sales are budgeted for $220,000 for May. 2 Each month's credit sales are collected 60% in the month of sale and 40% in the month following the sale. 3. The company pays for 50% of its merchandise purchases in the month of the purchase and the remaining 50% in the month following the purchase. All other information from Problem 7-17A that is not mentioned above remains the same. Required: Using the new assumptions described above, complete the following requirements: 1. Prepare a cash budget for May. Support your budget with a schedule of expected cash collections from sales and a schedule of expected cash disbursements for merchandise purchases Prepare a budgeted income statement for May. Use the absorption costing income statement format as shown in Schedule 9 2. 4. Prepare a budgeted balance sheet as of May 3