Minden Company is a wholesale distributor of premium European chocolates. The company's balance sheet as of April 30 is given below: Hinden Company Balance Sheet April 39 Assets Cash 5 13,500 Accounts receivable 53,500 Inventory 40,750 Buildings and equipment, net of depreciation 202,800 Total assets 5 319,750 Liabilities and Stockholders' Equity Accounts payable 5 67,750 Note payable 15,300 Common stock 188,800 Retained earnings 56,200 Total liabilities and stockholders' equity 5 319:753 The company is in the process of preparing a budget for May and has assembled the following data: a. Sales are budgeted at $263,000 for May. 0fthese sales, $78,900 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 ofthe April 30 accounts receivable will be collected in May. b. Purchases of inventory are expected to total $193,000 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 ofthe April 30 accounts payable to suppliers will be paid during May. c. The May 31 inventory balance is budgeted at $63,000