Minden Company is a wholesale distributor of premium European chocolates. The company's balance sheet as of April $30$ is given

below:

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

a$.$ Sales are budgeted at $$244,000$ for May. Of these sales, $$73,200$ 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 $30$ occounts receivable will be collected in May.

b$.$ Purchases of inventory are expected to total $$130,000$ during May. These purchases will all be on account. Forty percent of all

purchoses are paid for in the month of purchsse; the remainder are paid in the following month. All of the April $30$ accounts poyable

to suppliers will be paid during May.

c$.$ The May $31$ inventory balance is budgeted at $$40,500.$

d$.$ Selling and administrative expenses for May are budgeted at $$84,300,$ exclusive of depreciation. These expenses will be paid in

cosh$.$ Depreciation is budgeted at $$3,950$ for the month.

e$.$ The note poyable on the April $30$ bolance sheet will be paid during Moy, with $$430$ in interest. $($All of the interest relates to May$-)$

f$.$ New refrigeroting equipment costing $$7,800$ will be purchosed for cosh during May.

g$.$ During May, the company will borrow $$20,700$ from its bank by giving a new note payable to the bonk for that amount. The new

note will be due in one year.

Required:

For May:

Colculate the expected cosh collections from customers.

$2$ Calculate the expected cash disbursements for merchandise purchoses.

Prepare a cosh budget.

Prepare a budgeted income statement.

Prepore on end$-$of$-$month budgeted bolance sheet.

Complete this question by entering your answers in the tabs below.

Prepare an end$-$of$-$month budgeted balance sheet as of May $31.$