The company is in the process of preparing a budget for May and has assembled the following data: a. Sales are budgeted at $247,000 for May. Of these sales, $74,100 will be for cast, the remainder will be credit sales, One-heif 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 af the April 30 accounts receivable will be collected in May. b. Inventory purchases are expected to total $172,000 during May. These purchases will all be on account. Forty percent of all purchases are paid for in the month of purchose; the remainder are pald in the following month. All of the April 30 accourts payable to suppliers will be paid during May c. The May 31 inventory balance is budgeted at $58.500. d. Selling and administrative expenses for May are budgeted ot $87,600, excluding depreciation. These expenses will be poid in cash. Depreciation is budgeted at $6,850 for the month e. New refrigerating equipment costing $13,400 will be purchased for cash during May, 1. The note payabie on the Aprir 30 balance sheet will be paid during May, with 5385 in interest. (All of the interestreistes to May.) 9. During May, the company will borrow $22,900 from its bank by giving a new note payable to the bank for that arnount. The new note will be due in one yoar. 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. (Hint In the financing section, make sure to denote cash outfliows as nogative numbers. in the cash disbursements section, the cash outflows should be written as positive numbers. I know thils seems counterintuitive accountants tend to write costs as positive numbers if they are listed in a section of the financial statements that is alheudy labelod as "costs" or "expenses" or "disbursements" becouse then you know they are all outflows. But in a section where inflows and ourtlows are mixed, ihe in the financing section, they make the outflows negative numbers. 4. Prepare a budgeted income statement for May. (Hint: here, the interest poyment will have a positive sign. Another hint: Remember from ACTG 211 that Cost of Goods Sold = beginning inventory account balance + inventory purchose cost - ending inventary account balance. 5. Prepare a budgeted balance sheet as of May 31. (Hint You won' need every line on the worksheet. There should be four 'asset' items and four Wiability and owners' equity' items, matching the categorios in the beginning balance sheet above Another hint Remember from ACTG 211 that "Bulldings and Equipment, net of depreciation" is increased every month by any new building or equipment purchases, and decreased by any depreciation. May depreciation is given in part d aboved Complete this question by entering your answers in the tabs below. 1. Calculate the expected cash collections from customers for May. 2. Calculate the expected cash dishursements for merchandiso purchases for Moy. Complete this question by entering your answers in the tabs below. 1. Calculate the expected cash collections from customers for May. 2. Calculate the expected cash disbursements for merchandise purchases for May. Prepare a cash budget for May. (Cash deficiency, repayments and interest should be indicated by a minus sig Prepare a budgeted income statement for May. Prenare a budaeted balance sheet as of Mav 31