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	$	15,000
Accounts receivable		78,000
Inventory		37,750
Buildings and equipment, net of depreciation		232,000
Total assets	$	362,750
Liabilities and Shareholders Equity
Accounts payable	$	81,500
Note payable		14,000
Common shares		180,000
Retained earnings		87,250
Total liabilities and shareholders equity	$	362,750

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

1. Sales are budgeted at $294,000 for May. Of these sales, $88,200 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 $211,000 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 $77,000.
4. Selling and administrative expenses for May are budgeted at $96,900, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $5,000 for the month.
5. The note payable on the April 30 balance sheet will be paid during May, with $360 in interest. (All of the interest relates to May.)
6. New refrigerating equipment costing $8,800 will be purchased for cash during May.
7. During May, the company will borrow $20,900 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..

Schedule of Expected Cash Collections
Cash salesMay
Collections on account receivable:
April 30 balance
May sales
Total cash receipts

Schedule of Expected Cash Collections
Cash salesMay
Collections on account receivable:
April 30 balance
May sales
Total cash receipts

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

Minden Company
Cash Budget
For the Month of May
Beginning cash balance
Add collections from customers
Total cash available
Less cash disbursements:
Purchase of inventory
Selling and administrative expenses
Purchases of equipment
Total cash disbursements
Excess of cash available over disbursements
Financing:
Borrowingnote
Repaymentsnote
Interest
Total financing
Ending cash balance

2. Prepare a budgeted income statement for May.

Minden Company
Budgeted Income Statement
For the Month of May
Cost of goods sold:

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

Minden Company
Budgeted Balance Sheet
May 31
Assets
Total assets
Liabilities and Shareholders Equity
Total liabilities and shareholders equity