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 Accounts receivable, customers Inventory Buildings and equipment, net of depreciation Total assets Liabilities and Shareholders' Equity Accounts payable, suppliers Note payable Capital shares, no par Retained earnings Total liabilities and shareholders' equity $ 10,600 56,000 31,200 215,000 $312,800 $ 65,400 15,300 188,000 44,100 $312,800 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 $280,000 for May. Of these sales, $84,000 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 $168,000 during May. These purchases will all be on account. 40% 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 $56,000. d. Operating expenses for May are budgeted at $100,800, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $2,800 for the month. e. The note payable on the April 30 balance sheet will be paid during May, with $80 in interest. (All of the interest relates to May.) f. New refrigerating equipment costing $7,300 will be purchased for cash during May. g. During May, the company will borrow $28,000 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.) Answer is not complete. $ 10,600 MINDEN COMPANY Cash Budget For the Month Ended May 31 Cash balance, beginning Add: Receipts from customers Total cash available Deduct: Disbursements: Purchases of equipment Operating expenses Purchases of inventory 10,600 0 Total cash disbursements Excess of receipts over disbursements Financing: Borrowingsnote Retained earnings Repaymentnote Ending inventory Total financing Cash balance, ending >> X 0 > 2. Prepare a budgeted income statement for May. X Answer is not complete. MINDEN COMPANY Budgeted Income Statement For the Month Ended May 31 Sales Cost of goods sold: Beginning inventory Add: Purchases Goods available for sale 0 0 Deduct: Ending inventory Cost of goods sold Gross margin Operating expenses Net operating income OOOOO Interest expense Net income 3. Prepare a budgeted balance sheet as of May 31. Answer is not complete. MINDEN COMPANY Budgeted Balance Sheet as of May 31 Assets X $ 0 Cash Accounts receivable, customers Inventory Purchases of inventory Purchases of inventory Total assets Liabilities and Shareholders' Equity Accounts payable, suppliers Capital shares, no par Repaymentnote Retained earnings Retained earnings Total liabilities and shareholders' equity X x $ 0