Ostas Company is a wholesale distributor of premium European chocolates. The company's balance sheet as of April 30 is given below: Ostas Company Balance Sheet (April 30): Assets Liabilities and Stockholders' Eauitv The company is in the process of preparing budget data for May. Many budget items have already been prepared, as stated below: A. Budgeted sales for May are $200,000. Of these sales, $60,000 is for cash; the remainder will be credit sales. One-half of a month's credit sales are collected in the month of sales, and the remainder is collected in the following month. All of April 30 accounts receivable will be collected in May. B. Purchases of inventory are expected to total $120,000 during May. These purchases will all be on account. Forty percent of all purchases are paid for in the month of purchase; the remainder is 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 $40,000. D. Selling and administrative expenses for May are budgeted at $72,000, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $2,000 for the month. E. The note payable on the April 30 balance sheet will be paid during May, with $100 in interest. (All of the interest relates to May). F. New refrigerating equipment costing $6,500 will be purchased for cash during May. G. On May 31st, the company will borrow $20,000 from its bank just before the close of business hours by giving a new note payable to the bank for that amount. The new note will be due in one year. Questions Note: Please answer each part separately and follow the appropriate format for the financial statements. 1. For May, prepare a (i) schedule of expected cash collections from sales and (ii) schedule of expected cash disbursements for merchandise (10 points) 2. Prepare a cash budget for May. Only the dollar amount from the above schedules must be shown in your cash budget statement at appropriate places (15 points). 3. Prepare a budgeted income statement for May (20 points). 4. Prepare a budgeted balance sheet as of May 31 (20 points). Note: The correct answer should be typed into the space provided. You must also show your work that illustrates how you arrived at your answer by using the Insert menu option. Then, choose the appropriate option for the media you wish to upload for proof of your work