Problem $8-19($Algo$)$ Cash Budget; Income Statement; Balance Sheet $[$LO$8-2,$ LO$8-4,$ LO$8-8,$ LO$8-9,$ LO$8-10]$

Minden Company is a wholesale distributor of premium European chocolates. The company$$s balance sheet as of April $30$ is given below:

Minden CompanyBalance SheetApril $30$Assets$$Cash$ $17,200$Accounts receivable$58,000$Inventory$48,250$Buildings and equipment, net of depreciation$204,000$Total assets$ $327,450$Liabilities and Stockholders$$ Equity$$Accounts payable$ $67,000$Note payable$16,200$Common stock$180,000$Retained earnings$64,250$Total liabilities and stockholders$$ equity$ $327,450$

The company is in the process of preparing a budget for May and assembled the following data:

Sales are budgeted at $$253,000$ for May. Of these sales, $$75,900$ 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 $30$ accounts receivable will be collected in May.

Purchases of inventory are expected to total $$140,000$ during May. These purchases will all be on account. Forty percent 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.

The May $31$ inventory balance is budgeted at $$47,000.$

Selling and administrative expenses for May are budgeted at $$93,000,$ exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $$2,850$ for the month.

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 $$11,100$ will be purchased for cash during May.

During May, the company will borrow $$25,400$ 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:

For May:

Calculate the expected cash collections from customers.

Calculate the expected cash disbursements for merchandise purchases.

Prepare a cash budget.

Prepare a budgeted income statement.

Prepare an end$-$of$-$month budgeted balance sheet.