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 Assets Cash 14,300 55,750 Accounts receivable 49,250 Inventory 217,000 Buildings and equipment, net of depreciation 336,300 Total assets Liabilities and Stockholders' Equity 65,000 Accounts payable Note payable 16,500 Common stock 180,000 74,800 Retained earnings 336,300 Total liabilities and stockholders' equity The company is in the process of preparing a budget for May and has assembled the following data a. Sales are budgeted at $292,000 for May. Of these sales, $87,600 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 $216,000 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 $72,500. d. Selling and administrative expenses for May are budgeted at $82,200, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $4,500 for the month e. The note payable on the April 30 balance sheet will be paid during May, with $375 in interest. (All of the interest relates to May.) f. New refrigerating equipment costing $7,100 will be purchased for cash during May. g. During May, the company will borrow $20,500 from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year