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 $ $10,500$

Accounts receivable $57,000$

Inventory $42,500$

Buildings and equipment, net of depreciation $236,000$

Total assets $ $346,000$

Liabilities and Stockholders$$ Equity

Accounts payable $ $72,750$

Note payable $21,200$

Common shares $180,000$

Retained earnings $72,050$

Total liabilities and stockholders$$ equity $ $346,000$

The company is in the process of preparing a budget for May and has assembled the following data:

Sales are budgeted at $$296,000$ for May. Of these sales, $$88,800$ 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.

Purchases of inventory are expected to total $$192,000$ 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 $$51,500.$

Selling and administrative expenses for May are budgeted at $$98,700,$ exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $$2,150$ for the month.

The note payable on the April $30$ balance sheet will be paid during May, with $$220$ in interest. $($All of the interest relates to May.$)$

New refrigerating equipment costing $$6,800$ will be purchased for cash during May.

During May, the company will borrow $$23,200$ 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:

$1-$a$.$ Prepare a schedule of expected cash collections from sales and a schedule of expected cash disbursements for merchandise purchases..

$1-$b$.$ Prepare a cash budget for May. $($Cash deficiency, repayments and interest should be indicated by a minus sign.$)$

$2.$ Prepare a budgeted income statement for May.

$3.$ Prepare a budgeted balance sheet as of May $31.$