Problem $8-19($Static$)$ 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 companys balance sheet as of April $30$ is given below: Minden CompanyBalance SheetApril $30$Assets Cash$ $9,000$Accounts receivable$54,000$Inventory$30,000$Buildings and equipment, net of depreciation$207,000$Total assets$ $300,000$Liabilities and Stockholders Equity Accounts payable$ $63,000$Note payable$14,500$Common stock$180,000$Retained earnings$42,500$Total liabilities and stockholders equity$ $300,000$ The company is in the process of preparing a budget for May and has assembled the following data: 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 months credit sales are collected in the month the sales are made, and the remainder is collected in the following month. All of the April $30$ accounts receivable will be collected in May.Purchases of inventory are expected to total $$120,000$ during May. These purchases will all be on account. Forty percent of all purchases are paid for in the month of purchase; the remainder are paid in the following month. All of the April $30$ accounts payable to suppliers will be paid during May.The May $31$ inventory balance is budgeted at $$40,000.$Selling and administrative 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.The note payable on the April $30$ balance sheet will be paid during May, with $$100$ in interest. $($All of the interest relates to May.$)$New refrigerating equipment costing $$6,500$ will be purchased for cash during May.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:$1.$ Calculate the expected cash collections from customers for May$\mathrm{.}2.$ Calculate the expected cash disbursements for merchandise purchases for May$\mathrm{.}3.$ Prepare a cash budget for May$\mathrm{.}4.$ Prepare a budgeted income statement for May$\mathrm{.}5.$ Prepare a budgeted balance sheet as of May $31.$