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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

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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 $ 10,300 Accounts receivable 70,000 Inventory 43,000 Buildings and equipment, net of depreciation 227.000 Total assets $ 350,300 Liabilities and Stockholders' Equity Accounts payable 5 86,000 Note payable 23,000 Common stock 180,000 Retained earnings 61,300 Total liabilities and stockholders' equity $ 350, 300 The company is in the process of preparing a budget for May and has assembled the following data: a Sales are budgeted at $276,000 for May. Of these sales, $82,800 will be for cash; the remainder will be credit sales. One-half of month's credit sales are collected in the month the sales are made, and the remainder is collected in the following month. All of April 30 accounts receivable will be collected in May b. Purchases of inventory are expected to total $147,000 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 paya to suppliers will be paid during May c. The May 31 Inventory balance is budgeted at $43,000, d. Selling and administrative expenses for May are budgeted at $97,500, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $3,200 for the month e. The note payable on the April 30 balance sheet will be paid during May, with $235 in interest. (All of the interest relates to May) New refrigerating equipment costing $12,100 will be purchased for cash during May 9. During May, the company will borrow $29,200 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 4. Prepare a budgeted income statement for May. 5. Prepare a budgeted balance sheet as of May 31

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