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

Accounts receivable

Inventory

Buildings and equipment, net of depreciation

Total assets

Liabilities and stockholders' Equity

Accounts payable

Note payable

Common stock

Retained earnings

Total liabilities and stockholders' equity

$$14,500$

$72,750$

$31,750$

$209,000$

$$328,000$

$$69,500$

$16,000$

$180,000$

$62,500$

$$328,000$

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

a$.$ Sales are budgeted at $$247,000$ for May. Of these sales, $$74,100$ 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.

b$.$ Purchases of inventory are expected to total $$172,000$ 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 $$58,500.$

d$.$ Selling and administrative expenses for May are budgeted at $$87,600,$ exclusive of depreciation. These expenses will be paid in

cash. Depreciation is budgeted at $$6,850$ for the month.

e$.$ The note payable on the April $30$ balance sheet will be paid during May, with $$385$ in interest. $($All of the interest relates to May.$)$

f$.$ New refrigerating equipment costing $$13,400$ will be purchased for cash during May.

g$.$ During May, the company will borrow $$22,900$ 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:

Calculate the expected cash collections from customers for May.

Calculate the expected cash disbursements for merchandise purchases for May.

Prepare a cash budget for May.

Prepare a budgeted income statement for May.

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

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.