The company is in the process of preparing budget data for May. A number of budget items have already been prepared, as follows:

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 are collected in the following month. All of the April $30$ receivables will be collected in May.

b$.$ Purchases of inventory are expected to total $$120,000$ during May. These purchases will all be on account. $40\%$ 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$.$ Operating expenses for May are budgeted at $$72,000,$ exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $$2,000$ for the month.

e$.$ The note payable on the April $30$ balance sheet will be paid during May, with $$100$ in interest. $($All of the interest relates to May.$)$

f$.$ New refrigerating equipment costing $$6,500$ will be purchased for cash during May.

g$.$ During May, the company will borrow $$20,000$ 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:

Prepare a cash budget for May. Support your budget with schedules showing budgeted cash receipts from sales and budgeted cash payments for inventory purchases.

Prepare a budgeted income statement for May. Use the traditional income statement format.

Prepare a budgeted balance sheet as of May $31.$