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 Inventory muildings and equipment, net of depreciation Total assets Liabilities and stockholders' Iquity Accounts payable Note payable Common stock Retained earnings Total liabilities and stockholders' equity $ 18,000 76,000 32,500 243,000 $369,500 $ 10,250 13,200 180, doo 96,050 $369,500 The company is in the process of preparing a budget for May and has assembled the following data: a. Sales are budgeted at $238,000 for May. Of these soles, $71,400 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 $124,000 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 $24,000. d. Selling and administrative expenses for May are budgeted at $86,100. These expenses will be paid in cash and do not include a. Sales are budgeted at $238.000 for May. Of these sales. 571.400 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 $124,000 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 $24,000 d. Selling and administrative expenses for May are budgeted at $86,100. These expenses will be paid in cash and do not include depreciation. Depreciation is budgeted at $4.450 for the month, e. The note payable on the April 30 balance sheet will be paid during May, with $400 in interest. (All of the Interest relates to May) f. New refrigerating equipment costing $15,100 will be purchased for cash during May. 9. During May, the company will borrow $23,800 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. Calculate the expected cash collections from customers for May. 2. Calculate the expected cash disbursements for merchandise purchases for May. 3. Prepare a cash budget for May. (In the financing section, make sure to denote cash outflows as negative numbers in the cash disbursements section, the cash outfiows should be written as positive numbers. Sorry if this seems counterintuitive or confusing accountants tend to write costs as positive numbers if they are listed in a section of the financial statements that is already labeled as "costs" or "expenses" or "disbursements because then you know they are al outflows. But in a section where inflows and outflows are mixed, like in the financing section, they make the outfiows negative numbers) 4. Prepare a budgeted Income statement for May 5. Prepare a budgeted balance sheet as of May 31 (Note that you wont use every time on the worksheet There should be 4 asser items and 4 Hability and owners' equity items) Req 1 and 2 Req3 Req 4 Reg 5 Prepare a cash budget for May. (Cash deficiency, repayments and interest should be indicated by a Minden Company Cash Budget For the Month of May Beginning cash balance Add collections from customers Total cash available Less cash disbursements: Purchase of inventory Selling and administrative expenses Purchases of equipment Total cash disbursements Excess of cash available over disbursements Financing Borrowing-note Repayments-note Interest Total financing Ending cash balance 0 0 $ Req 1 and 2 Req3 Req 4 Reg 5 Prepare a budgeted income statement for May. Minden Company Budgeted Income Statement For the Month of May 0 0 $ 0 Req 1 and 2 Req3 Reg 4 Req 5 LE Prepare a budgeted balance sheet as of May 31. Minden Company Budgeted Balance Sheet May 31 Assets Total assets $ 0 Liabilities and Stockholders' Equity Total liabilities and stockholders' equity $ 0