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 Buildings and equipment, net of depreciation $ 11,100 72,500 37,500 238 000 Total assets $ 359,100 Liabilities and Stockholders' Equity Accounts payable Nole payable Common stock Retained earnings $ 68,000 19,400 180 000 91.700 Total liabilities and stockholders' equity $ 359.100 The company is in the process of preparing a budget for May and has assembled the following data: a. Sales are budgeted at $255,000 for May of these sales 576,500 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 $189.000 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 $77,500 d. Selling and administrative expenses for May are budgeted at $93.600, exclusive of depreciation. These expenses will be paid in cash Depreciation is budgeted at 56 250 for the month e The note payable on the April 30 balance sheet will be paid during May, with $370 in interest. (All of the interest relates to May.) f New refrigerating equipment costing $8,600 will be purchased for cash during May 9. During May, the company will borrow $29.500 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 a. Prepare a schedule of expected cash collections from sales and a schedule of expected cash disbursements for merchandise purchases Minden Company Schedule of Expected Cash Collections Cash sales-May Collections on account receivable April 30 balance May sales Total cash receipts Minden Company Schedule of Expected Cash Disbursements April 30 accounts payable balance May purchases Total cash payments 1-5. Prepare a cash budget for May (Cash deficiency, repayments and interest should be indicated by a minus sign.) 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 Seling 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 2. Prepare a budgeted income statement for May using the absorption costing income statement format Minden Company Budgeted Income Statement For the Month of May Cost of goods sold 3. Prepare a budgeted balance sheel as of May 31 Minden Company Budgeted Balance Sheet May 31 Assets Total assets Liabilities and Stockholders' Equity Total fiabilities and stockholders equily