Minden Company is a wholesale distributor of premium European chocolates. The company's balance sheet on April 30 is as follows: MENOEN COMPANY Balance Sheet April 30 Assets Cash Accounts receivable, customers Inventory Buildings and equipment, net of depreciation Total assets Liabilities and Shareholders' Equity Accounts payable, suppliers Note payable Capital shares, no par Retained earnings Total liabilities and shareholders' equity $ 15,800 62,500 35, 100 241,000 $354,400 $ 73,200 17,900 214,000 49,300 5354,400 The company is in the process of preparing budget data for May. A number of budget items have already been prepared, as follows: a. Sales are budgeted at $540.000 for May. Of these sales, $162,000 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 remainder are collected in the following month. All of the April 30 receivables will be collected in May. b. Purchases of inventory are expected to total $324,000 during May. These purchases will all be on account 30% 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 $108,000 d. Operating expenses for May are budgeted at $194,400, exclusive of depreciation. These expenses will be paid in cash Depreciation is budgeted at $5,400 for the month. e. The note payable on the April 30 balance sheet will be paid during May, with $110 in interest (All of the interest relates to May.) 1 New refrigerating equipment costing $9.900 will be purchased for cash during May 9. During May, the company will borrow $54,000 from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year. Required: Minden Company is a wholesale distributor of premium European chocolates. The company's balance sheet on April 30 is as follows. NTROEN CORNY Dalance Sheet April 10 Assets Cash Accounts receivable, customers Inventory Buildings and equipment, net of depreciation Total assets Liabilities and Shareholders' Equity Accounts payable, suppliers Note payable Capital shares, no par Retained earnings Total liabilities and shareholderst equity $ 15,00 62,500 35,18 241, Bee $354,400 $ 73,200 17,900 214,000 49,300 $354, 4e The company is in the process of preparing budget data for May. A number of budget items have already been prepared, as follows: a Sales are budgeted at $540,000 for May. Of these sales, S162,000 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 remainder are collected in the following month. All of the April 30 receivables will be collected in May. b. Purchases of inventory are expected to total $324,000 during May. These purchases will all be on account. 30% 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 $108,000, d. Operating expenses for May are budgeted at $194.400, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $5.400 for the month e. The note payable on the April 30 balance sheet will be paid during May, with $110 in interest. All of the Interest relates to May.) New refrigerating equipment costing $9.900 will be purchased for cash during May. g During May, the company will borrow $54.000 from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year Required: