Problem 8-19 Cash Budget; Income Statement: Balance Sheet [LO8-2, LO8-4, LO8-8, LO8-9, L08-10] Minden Company is a wholesale distributor of premi um European chocolates. The company's balance sheet as of April 30 is glven below: Minden Company Balance Sheet April 30 Assets Cash Accounts receivable Inventory Buildings and equipment, net of depreciation Total assets $ 12,700 66,500 48,500 229,000 $356,700 Liabilities and Stockholders' Equity Accounts payable Note payable Conmon stock $ 67,500 19,100 180,000 90,100 Retained earnings Total liabilities and $356,700 stockholders equity The company is in the process of preparing a budget for May and has assembled the following data: a. Sales are budgeted at $262,000 for May. Of these sales, $78,600 wl 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 $196,000 during May. These purchases will al be on account. Forty percent of all purchases are paid for in the month of purchase, the remainder are paild 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 $84,000. d. Selling and administrative expenses for May are budgeted at $87,30o, exclusive of depreciation. These expenses will e. The note payable on the April 30 balance sheet Wil be paid during May, with $550 in interest.(lof the interest t New refrigerating equipment costing $13,000 wlbe purchased for cash during May be paid in cash. Depreclation is budgeted at $6,400 for the month. relates to May) g During May, the company w borrow $28,900 trom its bank by giving a new note payable to the bank for that amount. The new note will be due in one year Required: L 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 budgeted Income statement for May 5. Prepare a budgeted balance sheet as of May 31