Question 4 points Modem Company is a wholesale distributor of premium European chocolates. The company's balance sheet as of April 30 is given below. Modem Company Balance Short April 30 Assets Cash Accounts receivable $18.500 58,300 Inventory 40,750 Buildings and equipment, ort of depreciation 202,000 Total assets $319,750 Liabilities and Stockholders Equity $67-750 Accounts payable Note payable Common stock $15,000 150.000 Retained earnings 56.200 Total liabilities and stockholders' equity 5319.750 The company is in the process of preparing a budget for May and has assembled the following data Sales are budgeted at 5263.000 for May: Of these sales, $78,900 will be for cash the remainder will be creda sales One-half of a month's credo sales are pollevsed is the mouth 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 $193,000 during May These purchases will all be on account. Forty percent of all purchases are paid for in the oth of purchase, the mainder are paid in the following month. All of the April 30 accounts payable to suppliers will be paid during May Activate Windows to W The May 31 inventory balance is budgeted at 563,000. Selling and administrative expenses for May are budgeted at $73,200, exclusive of depreciation. These expenses will be paid in cash. Depreciation is bodgeted at $4,650 for the mos The note payable on the April 30 balance sheet will be paid during May, with $300 in interest. (All of the interest relates to May) New refrigerating equipment costing $11.900 will be purchased for cash during May Daring May, the company will borrow $27.200 from its bank by giving a new note payable to the bank for that amount. The new note will be doe in one year 567.750 Note payable Common stock $15.800 150.000 Retained earnings Total liabilities and stockholders' equity 36,200 $319,750 The company is in the process of preparing a budget for May and has assembled the following dat Sales are budgeted at $263,000 for May Of these sales, $78.900 will be for cash, the remainder will be credit sales. Ooe-half of a mouth's credit sales are collected in the oth the sales are made and be 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 $193,000 during May. These purchases will all be on accoust Forty percent of all purchases are paid for in the mouth of purchase the reader 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 $63,000 Selling and administrative expenses for May are budgeted at 573,200, exclusive of depreciation. These expenses will be paid in cash. Depreciation is bugstad st 54.650 for the The note payable on the April 30 balance sheet will be paid during May, with $300 in interest (All of the interest relates to May.) New refrigerating equipment costing $11.900 will be purchased for cash during May During May, the company will borrow $27.200 from its bank by giving a new note payable to the bank for that amoat The new will be due in our year Required: Using the information provided, prepare the following 1. The budgeted expected cash collections from customers for May [1 marks] 2. The budgeted expected cash disbursements for merchandise purchases for May (1 marks] 3. The cash budgeted for May. 15 marks] For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac) *** EVENA I XO