Minden Company is a wholesale distributor of premium European chocolates. The companys balance sheet as of April is given below:

Minden Company

Balance Sheet

April

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 $

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

Sales are budgeted at $ for May. Of these sales, $ will be for cash; the remainder will be credit sales. Onehalf of a months credit sales are collected in the month the sales are made, and the remainder are collected in the following month. All of the April accounts receivable will be collected in May.

Purchases of inventory are expected to total $ 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 accounts payable to suppliers will be paid during May.

The May inventory balance is budgeted at $

Selling and administrative expenses for May are budgeted at $ exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $ for the month.

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

New refrigerating equipment costing $ will be purchased for cash during May.

During May, the company will borrow $ 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:

For May:

Calculate the expected cash collections from customers.

Calculate the expected cash disbursements for merchandise purchases.

Prepare a cash budget.

Prepare a budgeted income statement.

Prepare an endofmonth budgeted balance sheet.