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.

Required:
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.

Minden Company Balance Sheet April 30 Assets Cash. 54,000 30,000 Inventory Liabilities and Stockholders' Equity 14,500 180,000 42,500 $300,000 Note payable .O Common stock Retained earnings Total liabilities and stockholders' equity