for Minden Company in Problem 8-19. The company is considering making the Sheet; Changing Assumptions L08-2, following changes to the assumptions underlying its master budget: 1. Sales are budgeted for $220,000 for May. Each month's credit sales are collected 60% in the month of sale and 40% in the month follow- he sale. ny pays for 50% of its merchandise purchases in the month of the purchase and the in the month following the purchase. ition from Problem 8-19 that is not mentioned above remains the same, ptions described above, complete the following requirements: 1. Calc expected cash collections for May. 2. Calculate the expected cash disbursements for merchandise purchases for May. 3. Prepare a cash budget for May. 4. Using Schedule 9 as your guide, prepare a budgeted income statement for May. 5. Prepare a budgeted balance sheet as of May 31. PROBLEM 8-21 Schedules of Expected Cash Collections and Disbursements L08-2, L08-4, L08-8 You have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipment. The following information is available about the company's operations The cash balance on December 1 is $40,000. b. Actual sales for October and November and expected sales for December are as follows: 0 a. October November December Cash sales Sales on account. $65,000 $400,000 $70,000 $525,000 $83,000 $600,000 C. Sales on account are collected over a three-month period as follows: 20% collected in the month of sale, 60% collected in the month following sale, and 18% collected in the second month following sale. The remaining 2% is uncollectible. Purchases of inventory will total $280,000 for December. Thirty percent of a month's inven- tory purchases are paid during the month of purchase. The accounts payable remaining from November's inventory purchases total $161,000, all of which will be paid in December. d. Selling and administrative expenses are budgeted at $430,000 for December. Of this amount, $50,000 is for depreciation