Minden Company Balance Sheet April 30 Assets Cash Accounts receivable Inventory Buildings and equipment, net of depreciation $ 9,000 54,000 30,000 207,000 otal assets $ 300,000 Liabilities and Stockholders' Equity Accounts payable Note payable Common stock Retained earnings $ 63,000 14,500 180,000 42,500 Total liabilities and stockholders' equity $300,000 The company is in the process of preparing a budget for May and has assembled the following data a. Sales are budgeted at $220,000 for May. Of these sales, $60,000 will be for cash; the remainder will be credit sales. Each month's credit sales are collected 60% in the month of sale and 40% in the month following the sale. All of the April 30 accounts receivable will be collected in May. b. Purchases of inventory are expected to total $120,000 during May. These purchases will all be on account. 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 of the April 30 accounts payable to suppliers will be paid during May. c. The May 31 inventory balance is budgeted at $40,000 d. Selling and administrative expenses for May are budgeted at $72,000, exclusive of depreciation. These e. The note payable on the April 30 balance sheet will be paid during May, with $100 in interest. (All of the f. New refrigerating equipment costing $6,500 will be purchased for cash during May expenses will be paid in cash. Depreciation is budgeted at $2,000 for the month interest relates to May.) g. During May, the company will borrow $20,000 from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year