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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, not of depreciation $ 9.400 78,500 44,000 221,000 Total assets $ 352,900 Liabilities and shareholders' Equity Accounts payable Note payable Common shares Retained earnings Total liabilities and shareholders' equity $ 72,000 19,700 180,000 81,200 $ 352,900 The company is in the process of preparing a budget for May and has assembled the following data: a. Sales are budgeted at $256,000 for May. Of these sales, $76,800 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. Purchases of inventory are expected to total $188,000 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 $83,000. d. Selling and administrative expenses for May are budgeted at $91,500, exclusive of depreciation. These expenses will be paid in cash Depreciation is budgeted at $4,000 for the month. e. The note payable on the April 30 balance sheet will be paid during May, with $435 in interest. All of the interest relates to May) f. New refrigerating equipment costing $7.000 will be purchased for cash during May. 9. During May, the company will borrow $23,100 from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year 2. Prepare a budgeted income statement for May. $ 256,000 Minden Company Budgeted Income Statement For the Month of May Sales Cost of goods sold: Cost of goods sold $ 107,000 Selling and administrative expenses 91,500 Other expenses 198,500 Depreciation 4,000 194,500 61,500 61,500 Net income $ 61,500 3. Prepare a budgeted balance sheet as of May 31. Minden Company Budgeted Balance Sheet May 31 Assets Cash $ Accounts receivable Inventory Buildings and equipment, net of depreciation 11,565 89,600 83,000 224,000 408,165 Total assets $ Liabilities and Shareholders' Equity Accounts payable $ Note payable Common stock Retained earnings 112,800 23,100 180,000 92,265 Total liabilities and shareholders' equity $ 408,165