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Minden Company is a wholesale distributor of premium European chocolates. The company's balance sheet on April 30 is as follows: MINDEN COMPANY Balance Sheet April

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Minden Company is a wholesale distributor of premium European chocolates. The company's balance sheet on April 30 is as follows: MINDEN COMPANY Balance Sheet April 30 Assets Cash $ 11,800 Accounts receivable, customers 57, 500 Inventory 32, 100 Buildings and equipment, net of depreciation 221, 000 Total assets $322, 400 Liabilities and Shareholders' Equity Accounts payable, suppliers $ 67,200 Note payable 15 ,900 Capital shares, no par 194,000 Retained earnings 45, 300 Total liabilities and shareholders' equity $322, 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 $340,000 for May. Of these sales, $102,000 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 $204,000 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 $68,000. d. Operating expenses for May are budgeted at $122,400, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $3,400 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.) f. New refrigerating equipment costing $7,900 will be purchased for cash during May. g. During May, the company will borrow $34,000 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: 1. Prepare a cash budget for May. (Any "Repayments" and "Interest" should be indicated by a minus sign.) MINDEN COMPANY Cash Budget For the Month ard May 31

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