PROBLEM 8-19 Cash Budget: Income Statement; Balance Sheet L08-2g, L08-4g LO8-80,LO8-9, LO8-10 Minden Company is a wholesale distributor of premium European chocolates. The company's balance sheet as of April 30 is given below Balance Sheet April 30 Assets S 9,000 54,000 30,000 Accounts receivable Inventory Buildings and equipment, net of depreciation _207,000 Total assets Liabilities and Stockholders' Equity Accounts payable Note payable Common stock Retained earnings Total liabilities and stockholders' equity $300.,000 S300,000 S 63,000 14,500 180,000 42,500 The company is in the process of preparing a budget for May and has assembled the following data: a. Sales are budgeted at $200,000 for May. Of these sales, $60,000 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 b. Purchases of inventory are expected to total $120,o00 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. c. The May 31 inventory balance is budgeted at $40,000. d. Selling and administrative expenses for May are budgeted at $72,0oo, exclusive of depreciation. These expenses e. The note payable on the April 30 balance sheet will be paid during May, with $100 in interest. (All of the interest f. New refrigerating equipment costing $6,500 will be purchased for cash during May. will be paid in cash. Depreciation is budgeted at $2,oo0 for the month. relates to May.) g. During May, the company will borrOw $20,00o 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 for May 2. Calculate the expected cash disbursements for merchandise purchases for May 3. Prepare a cash budget for May 4. Using Schedule 9@ as your guide, prepare a budgeted income statement for May 5. Prepare a budgeted balance sheet as of May 31