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Minden Company is a wholesale distributor of premlum European chocolates. The companys balance sheet es of Apr'i 30 is glven below Balance Sheet Cash Accounts

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Minden Company is a wholesale distributor of premlum European chocolates. The companys balance sheet es of Apr'i 30 is glven below Balance Sheet Cash Accounts recelvable $ 9,000 54,000 30,000 207,000 ry Baiidings and equipment, net of depreciation Total assets $ 300,000 Labilieies and stockholders' Equiey Accounts payable Note payable $63,000 14,500 180,000 Common stock Retained earnings8 Total liabilities and stockhoLders' equity 5 300.000 nces The company Is in the process of preparing a budget for May and has assembied the following data: a. Sales are budgeted at $220,000 for May Of these sales, $60,000 will be for cash; the remainder will be credit sales. Each month's credit sales are collected 60% in the month of sale and 40% in the month following the sale. Al of the April 30 secounts recevable will be collected in May. b. Purchases of Inventory are expected to total $120,000 during May. These purchases will all be on account. The company pays for 50% of its merchandise purchases in the month of the purchase and the remaining 50% in tne month folowing the purchase. All of the April 30 accounts payable to supplilers will be paid during May. The May 31 Inventory balance is budgeted at $40.co0. d Seling and administrative expenses for May are budgeted at $72.000, exclusive of depreclation. These exoenses will be paid in cash. Depreciation is budgeted at $2,000 for the month. e. The note payable on the Apri 30 ba ance sheet wil be paid during May, with $100 in Interest (Al of the interest relates to May) New refrigerating equipment costing $6,500 will be purchased for cash during May. g During May, the company will borrow $20,000 from its bank by giving a new note payable to the bank for that a mount the new note will be due in one year Required: 1 Calculate the expected cash collections for May. 2. Calculate the expected cash disbursements for merchandise purchases for May 3. Prepare a cash budget for May 4. Prepare a budgoted income statement for May 5, Prepare a budgeted balance shoot as of May 31 Complete this question by entering your answers in the tabs below

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