Problem $8-19$ Cash Budget; Income Statement; Balance Sheet $[$LO$8-2,$ LO$8-4,$ LO$8-8,$ LO$8-9,$ LO$8-10]$

Minden Company is a wholesale distributor of premium European chocolates. The company$$s balance sheet as of April $30$ is given below:

Minden Company

Balance Sheet

April $30$

Assets

Cash $ $9,200$

Accounts receivable $76,250$

Inventory $49,750$

Buildings and equipment, net of depreciation $228,000$

Total assets $ $363,200$

Liabilities and Stockholders$$ Equity

Accounts payable $ $63,750$

Note payable $23,900$

Common stock $180,000$

Retained earnings $95,550$

Total liabilities and stockholders$$ equity $ $363,200$

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

Sales are budgeted at $$227,000$ for May. Of these sales, $$68,100$ 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.

Purchases of inventory are expected to total $$159,000$ 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.

The May $31$ inventory balance is budgeted at $$87,500.$

Selling and administrative expenses for May are budgeted at $$79,500,$ exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $$6,000$ for the month.

The note payable on the April $30$ balance sheet will be paid during May, with $$105$ in interest. $($All of the interest relates to May.$)$

New refrigerating equipment costing $$11,800$ will be purchased for cash during May.

During May, the company will borrow $$25,100$ 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 $31.$