Refer to the data for Minden Company in Problem 8 17
Refer to the data for Minden Company in Problem 8–17. The company is considering making the following changes to the assumptions underlying its master budget:
In Problem 8–17 Minden Company is a wholesale distributor of premium European chocolates. The company’s balance sheet as of April 30 is given below:

1. Sales are budgeted for $ 220,000 for May.
2. Each month’s credit sales are collected 60% in the month of sale and 40% in the month following the sale.
3. The company pays for 50% of its merchandise purchases in the month of the purchase and the remaining 50% in the month following the purchase. All other information from Problem 8–17 that is not mentioned above remains the same.

Using the new assumptions described above, complete the following requirements:
1. Prepare a cash budget for May. Support your budget with a schedule of expected cash collections from sales and a schedule of expected cash disbursements for merchandise purchases.
2. Prepare a budgeted income statement for May. Use the absorption costing income statement format as shown in Schedule 9.
3. Prepare a budgeted balance sheet as of May31.
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