Minden Company is a wholesale distributor of premium European chocolates. The company's balance sheet as of April 30 is given below: \begin{tabular}{|l|l|} \hline \multicolumn{2}{|c|}{ Selling and administrative expenses } \\ \hline Purchases of equipment & \\ \hline Total cash disbursements & \\ \hline Excess of cash available over disbursements & \\ \hline Financing: & \\ \hline Borrowing - note & \\ \hline Repayments-note & \\ \hline Interest & \\ \hline Total financing & \\ \hline Ending cash balance & \\ \hline \end{tabular} Req 1 and 2 Req 4 \begin{tabular}{|l|l|} \hline \\ \hline Total assets \\ \hline \multicolumn{2}{|c|}{ Liabilities and Stockholders' Equity } \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline Total liabilities and stockholders' equity & \\ \hline \end{tabular} Req 4 Req5 Prepare a budgeted balance sheet as of May 31 . Prepare a budgeted income statement for May. The company is in the process of preparing a budget for May and has assembled the following data: a. Sales are budgeted at $275,000 for May. Of these sales, $82,500 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 $214,000 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 $87,000. d. Selling and administrative expenses for May are budgeted at $81,300, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $2,750 for the month. e. The note payable on the April 30 balance sheet will be paid during May, with $585 in interest. (All of the interest relates to May) f. Now refrigerating equipment costing $10,800 will be purchased for cash during May. 9. During May, the company will borrow $20,800 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 . Prepare a cash budget for May. Note: Cash deficiency, repayments and interest should be indicated by a minus sign. 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
