Minden Company is a wholesale distributor of premium European chocolates. The companys 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 stock	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:

1. 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 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.

2. 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.

3. The May 31 inventory balance is budgeted at $51,500.

4. 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.

5. 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.)

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

7. 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. 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.

Problem 8-19 (Algo) Cash Budget; Income Statement; Balance Sheet [LO8-2, LO8-4, LO8-8, LO8-9, LO810] 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 has assembled the following data: a Sales are budgeted at $296,000 for May Of these sales, $88,800 will be for cash, the remainder will be credit sales One-haif of a month's credit sales are collected in the month the sales are made, and the remainder is collected in the foltowing month. All of the April 30 accounts receivable will be collected in May b. Purchases of inventory are expected to total \$192,000 during May These purchases wilf all be on account. Forty percent of all purchases are poid 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 $51.500 d Selling and administrative expenses for May are budgeted at $98700, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $2.150 for the month. e. The note payable on the April 30 balance sheet will be paid duting May. with $220 in interest. (All of the interest relates to May) t New refrigerating equipment costing $6,800 wil be purchased for cash during May. 9. During May, the company will borrow $23200 from its bank by giving a new nate payable to the banic for that amount. The new note will be due in one year. Required: 1. Calculate the expected cash collections fram customers for May 2 Calculate the expected cish disbutsements for merchancise purchases for Moy Complete this question by entering your answers in the tabs below. 1. Calculate the expected cash collections from customers for May. 2. Calculate the expected cash disbursements for merchandise purchases for May. Complete this question by entering your answers in the tabs below. Prepare a cash budget for May. (Cash deficiency, repayments and interest should be indicated by a minus sign.) Complete this question by entering your answers in the tabs below. Prepare a budgeted income statement for May. Complete this question by entering your answers in the tabs below. Prepare a budgeted balance sheet as of May 31