III. ABC company is a wholesaler distributor of soft drinks. The company's balance sheet as of April 30 is giving below ABC Company Balance Sheet April 30 $ 11,000 Cash A/R 75,000 Inventory 42,000 Building &Equipment depre. 338,000 A/P 89,000 N/P 35,000 Capital stock 280,000 Retain earning 62,000 The company is in the process of preparing budget data for May. A number of budget items have already been prepared, as stated below a. Sale are budgeted at $300,000 for May. Of these sales, $120,000 will be for cash, the remainder will be credit sale. 35% of a month's credit sale are collected in the month the sales are made, and the remainder are collected in the following month. All of the April 30 receivables will be collected in May. b. Purchase of inventory are expected to total $216,000 during May. These purchases will all be on account. 60% of all purchase are paid for in the month of purchase, the remainder are paid in the following month. All of the April 30 A/P to supplier will be paid during May c. The May 31 inventory balance is budgeted at $50,000 d. Operating expenses for May are budgeted at $71,000, exclusive of depreciation. This expanse will be paid in cash. Depreciation is budgeted $5,000 for the month e. The N/P on the April 30 balance sheet will be paid during May, with $200 in interest, (all of interest relate to May) f. New refrigerating equipment costing $10,000 will be purchased for cash during May g. During May, the company will borrow $70,000 from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year. Requires: 1- Prepare a cash budget for May. Support your budget with schedules showing budgeted cash receipts from sales and budgeted cash payments for inventory purchases. 2- Prepare a budgeted income statement for May, Use the traditional income statement format 3- Prepare a budgeted balance sheet as of May 31