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, customers Inventory Buildings and equipment, net of depreciation Total assets $ 9,000 54,000 30,000 207,000 Liabilities and Stockholders' Equity Accounts payable, suppliers Note payable Capital stock Retained earnings Total liabilities and stockholders' equity S 63,000 14,500 180,000 42,500 The company is in the process of preparing budget data for May. A number of budget items have already been prepared, as stated below: Sales are budgeted at $200,000 for May. Of 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 a. the sales are made, and the remainder is collected in the following month. All of the April 30 receivables will be collected in May b. Purchases of inventory are expected to total $120,000 during May. These purchases will al be on account. Forty percent of all purchases are paid for in the month of purchase; the remainder is paid in the following month. Allof the April 30 accounts payable to suppliers will be paid during May The May 31 inventory balance is budgeted at $40,000 c. d. Operating 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 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. (All of the interest relates to May.) 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 vear g. REQUIRED Prepare a cash budget for May. Support your budget with schedules showing budgeted cash receipts from sales and budgeted cash payments for inventory purchases Prepare a budgeted income statement for May. Use the traditional income statement format. Prepare a budgeted balance sheet as of May 31 1. 2. 3