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Minden Company is a wholesale distributor of premium European chocolates. The companys balance sheet as of April 30 below Minden Company Balance Sheet April 30

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Minden Company is a wholesale distributor of premium European chocolates. The companys balance sheet as of April 30 below Minden Company Balance Sheet April 30 Assets Cash Accounts receivable Inventory Bui ldings and equipment, net of depreciat ion Total assets 18,000 76,000 32,500 243,000 $369,see Liabilities and Stockholders Equity Accounts payable Note payable Common stock Retained earnings 80,250 13,200 180,000 96,950 Total Llabilities and stockholders' equity $369,500 The company is in the process of preparing a budget for May and has assembled the following data a. Sales are budgeted at $238,000 for May Of these sales, $71,400 ill be for cash; the remainder will be credit sales. One-half of a month's credit sales are collected in the monh thsare 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 $124,000 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 folowing month. All of the April 30 accounts payable to suppliers will be paid during May c. The May 31 inventory balance is budgeted at $24,000 d. Selling and administrative expenses for May are budgeted at $86,100, exclusive of depreciation. These expenses will be paid in e. The note payable on the April 30 balance sheet will be paid during May, with $400 in interest. (All of the interest relates to May) cash. Depreciation is budgeted at $4,450 for the month New refrigerating equipment costing $15,100 will be purchased for cash during note will be due in one year. May g. During May, the company will borrow $23,800 from ts bank by giving a new note payable to the bank for that amount The new

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