Minden Company is a wholesale distributor of premium European chocolates. The companys balance sheet as of April 30 is given below: Minden CompanyBalance SheetApril 30AssetsCash$16,500Accounts receivable 67,000Inventory 32,000Buildings and equipment, net of depreciation 249,000Total assets$364,500Liabilities and Stockholders EquityAccounts payable$68,750Note payable 20,500Common stock 180,000Retained earnings 95,250Total liabilities and stockholders equity$364,500 The company is in the process of preparing a budget for May and has assembled the following data: Sales are budgeted at $241,000 for May. Of these sales, $72,300 will be for cash; the remainder will be credit sales. One-half of a months 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.Purchases of inventory are expected to total $191,000 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.The May 31 inventory balance is budgeted at $86,000.Selling and administrative expenses for May are budgeted at $76,200, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $5,300 for the month.The note payable on the April 30 balance sheet will be paid during May, with $170 in interest. (All of the interest relates to May.)New refrigerating equipment costing $6,600 will be purchased for cash during May.During May, the company will borrow $27,000 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. 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.

1.. Calculate the expected cash collections from customers for May.

2. Calculate the expected cash disbursements for merchandise purchases for May.

Total cash collections	$ t
Total cash disbursements

3.

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	not attempted
Add collections from customers	not attempted
Total cash available	0
Less cash disbursements:
Purchase of inventory	not attempted
Selling and administrative expenses	not attempted
Purchases of equipment	not attempted
Total cash disbursements	0
Excess of cash available over disbursements	0
Financing:
Borrowingnote	not attempted
Repaymentsnote	not attempted
Interest	not attempted
Total financing	0
Ending cash balance	$0

4. Income statement

5.

Minden Company
Budgeted Balance Sheet
May 31
Assets
Cash	$18,530selected answer correct
Accounts receivable	84,350selected answer correct
Inventory	86,000selected answer correct
Buildings and equipment, net of depreciationt	2selected answer incorrect
not attempted	not attempted
not attempted	not attempted
Total assets	$188,882
Liabilities and Stockholders Equity
Accounts payableselected answer correct	not attempted
Note payableselected answer correct	not attempted
Common stockselected answer correct	not attempted
not attempted	not attempted
Retained earningsselected answer correct	not attempted
not attempted	not attempted
Total liabilities and stockholders equity