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 a budget for May and assembled the following data:

a$.$ Sales are budgeted at $$260,000$ for May. Of these sales, $$78,000$ 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 $30$ accounts receivable will be collected in May.

b$.$ Purchases of inventory are expected to total $$155,000$ 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.

c$.$ The May $31$ inventory balance is budgeted at $$59,500.$

d$.$ Selling and administrative expenses for May are budgeted at $$99,500,$ exclusive of depreciation. These expenses will be paid in

cash. Depreciation is budgeted at $$4,550$ for the month.

e$.$ The note payable on the April $30$ balance sheet will be paid during May, with $$460$ in interest. $($All of the interest relates to May.$)$

f$.$ New refrigerating equipment costing $$11,000$ will be purchased for cash during May.

g$.$ During May, the company will borrow $$21,500$ from its bank by giving a new note payable to the bank for that amount. The new

note will be due in one year.

Requlred:

For May:

Calculate the expected cash collections from customers.

Calculate the expected cash disbursements for merchandise purchases.

Prepare a cash budget.

Prepare a budgeted income statement.

Prepare an end$-$of$-$month budgeted balance sheet.

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

Calculate the expected cash collections from customers for May.

Calculate the expected cash disbursements for merchandise purchases for May.

Total cash collections

Total cash disbursements