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 3 Assets Cash 9,500 Accounts receivable 56,500 Inventory 53,250 234,000 Buildings and equipment, net of depreciation 353,250 Total assets Liabilities and Stockholders' Equity 79,000 Accounts payable Note payable 20,000 Common stock 180,000 74,250 Retained earnings 353,250 Total liabilities and stockholders' equity The company is in the process of preparing a budget for May and has assembled the following data a. Sales are budgeted at S299,000 for May. Of these sales, $89,700 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 $169,000 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 $42,000 d. Selling and administrative expenses for May are budgeted at S89,700, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $2,250 for the month e. The note payable on the April 30 balance sheet will be paid during May, with $320 in interest. (All of the interest relates to May.) f. New refrigerating equipment costing $7,200 will be purchased for cash during May g. During May, the company will borrow $25,200 from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year