Minden Company is a wholesale distributor of premium European chocolates. The compary's balance sheet as of April 30 is given below: The company is in the process of preparing a budget for May and has assembled the following data: a. Sales are budgeted at $200,000 for May. Of these sales, $60,000 will be for cash: the remainder will be credit sales. One halt ot 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 recelvable will be collected in May. b. Purchases of inventory are expected to total $120,000 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 baiance is budgeted at $40,000. d. Selling and administrative expenses for May are budgeted at $72,000, exclusive of depreciation. These expenses will be pald in a. Sales are budgeted at $200,000 for May. Or these sales, $60,000 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 remairider is collected in the following month, All of the Aprill 30 accounts recelvable will be collected in May. b. Purchases of inventory are expected to total $120.000 during May. These purchases will all be on account. Forty percent of oll 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 pald 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 expenses will be paid in cash. Depreciation is budgeted at \$2,000 for the month. e. The note payable on the April 30 balance sheet will be poid during Moy, with $100 in interest. (All of the interest relates to May.) f. Now refigerating equipment costing $6,500 will be purchased for cosh during May. 9. During Mary, the compary will borrow $20,000 from its bank by glving a new note payable to the bank for that amount. The new note will be due in one year Required: 1. Calculate the expected cash collections from customers for May. 2. Calculate the expected cash disbursements for merchandise purchases for May. 3. Prepare a cash budget for May. 4. Prepare a budgeted income statement for May. 5. Prepare a budgeted balance sheet as of May 31. Complete this question by entering your answers in the tabs below. Required: 1. Calculate the expected cash collections from customers for May. 2. Calculate the expected cash disbursements for merchandise purchases for May. 3. Prepare a cash budget for May. 4. Prepare a budgeted Income statement for May 5. Prepare a budgeted balance sheet as of May 31. Complete this question by entering yout answers in the tabis below. Prepare a budgeted income stotement for May
