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 $11,500 64,750 47,000 220,000 Total assets $ 343,250 Liabilities and Stockholders' Equity Accounts payable Note payable Common stock Retained earnings $70,750 19,900 180,000 72,600 Total liabilities and stockholders' equity $ 343,250 The company is in the process of preparing a budget for May and has assembled the following data: a. Sales are budgeted at $290,000 for May. Of these sales, $87,000 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 is collected in the following month. All of the April 30 accounts receivable will be collected in b. Purchases of inventory are expected to total $210,000 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 $79,500 d. Selling and administrative expenses for May are budgeted at $96,300, exclusive of depreciation. These e. The note payable on the April 30 balance sheet will be paid during May, with $450 in interest. (All of the f. New refrigerating equipment costing $7,600 will be purchased for cash during May expenses will be paid in cash. Depreciation is budgeted at $5,800 for the month interest relates to May.) g. During May, the company will borrow $23,700 from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year