Cosmos Mattress Company, a manufacture of mattresses, prepared the following budgeted income statement for May: Net Sales Cost of Goods Sold Gross Margin Non-operating Income-rent $300,000 100,000 200,000 10.000 210,000 $110,000 Selling Expenses Operating expenses Wages Depreciation Interest Insurance Rent Income before taxes 20.000 5,000 1,200 200 500 136.900 $ 73,100 The cash balance on May 1 was $24,000. Half of the sales are collected in the month of sale, 40 percent in the next month, and 10 percent in the third month. Rental income is collect in month earned. Accounts receivable at May 1 was $520,000 ($70,000 for March sales and $450,000 from April sales). Inventory on May 1 was $80,000; it is expected to total $100,000 on May 31. Insurance is 1/12 of the annual premium. The premium is due in December. A $120,000, 1-year, 12 percent bank note is due in May; principle and interest are due in one payment at maturity. When paid, the note will have been outstanding for one year. Cosmos plans on purchasing $100,000 of equipment during May. The equipment has a five year life and will be depreciated using the straight-line method. Cosmos will pay cash for the equipment in the month acquired. Purchases of inventory are paid for in the month of acquisition. Wages are paid for in the month incurred. Prepare a cash receipts budget for May and determine the total cash inflows. a. $520,000 b. $311,000 c. $580,000 d. $590,000 e. None of the above. Prepare the cash disbursements budget and determine total cash outflows. a. $472,700 b. $364,900 c. $484,900 d. $236,900 e. None of the above Cosmos wants to maintain a $150,000 ending cash balance. If Cosmos borrows money in $1.000 amounts, what is the amount of the loan for May? a. $ 0.00 b. $10,000 c. $20,900 d. $21,000 e. None of the above. What is the cash balance at the end of May? a. $150,100 b. $173,100 c. $150,000 d. $ 85,000 e. None of the above