**Minden Company: Financial Analysis and Budgeting for May***Minden Company* is a wholesale distributor of premium European chocolates. Below is the company's balance sheet as of April 30:### Minden Company Balance Sheet**April 30****Assets** - Cash: $9,200 - Accounts receivable: $26,750 - Inventory: $49,750 - Buildings and equipment, net of depreciation: $228,000 - **Total assets: $363,200****Liabilities and Stockholders’ Equity** - Accounts payable: $63,750 - Note payable: $23,900 - Common stock: $180,000 - Retained earnings: $95,550 - **Total liabilities and stockholders’ equity: $363,200**---### May Budget PreparationMinden Company is preparing a budget for May, considering the following factors:**a. Sales** - Budgeted at $227,000 for May.- $68,100 will be cash sales; the remainder will be credit sales.- Half of a month’s credit sales are collected in the month they occur, the remainder in the following month.- All accounts receivable on April 30 will be collected in May.**b. Inventory Purchases** - Expected to total $159,000, with all purchases on account.- 40% of a month’s purchases are paid in the month of purchase, the remainder in the following month.- All accounts payable from April 30 will be paid in May.**c. Inventory Balance for May 31** - Budgeted at $87,500.**d. Selling and Administrative Expenses** - Budgeted at $79,500, excluding depreciation.- Depreciation budgeted at $6,000 for the month.**e. Note Payable** - The balance from April 30 will be paid in May, with $105 interest.**f. Purchase of New Refrigerating Equipment** - Costing $11,800, to be purchased for cash in May.**g. Loan from Bank** - Borrowing $25,100 with a new note payable, due in one year.---### Required Calculations for May1. Calculate expected cash collections from customers.2. Calculate expected cash disbursements for merchandise purchases.3. Prepare a cash budget.4. Prepare a budgeted income statement

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Minden Company is a wholesale distributor of premium European chocolates. The company's balance sheet as of April 30 is given below: Assets Cash Minden Company Balance Sheet April 30 Accounts receivable Inventory. Buildings and equipment, net of depreciation Total assets. Liabilities and Stockholders' Equity Accounts payable Note payable Common stock Retained earnings Total liabilities and stockholders' equity $ 9,200 76,250 49,750 228,000 $363,200 Required: For May: $ 63,750 23,900 180,000 95,550 $363,200 The company is in the process of preparing a budget for May and assembled the following data: a. Sales are budgeted at $227,000 for May. Of these sales, $68,100 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. b. Purchases of inventory are expected to total $159,000 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. c. The May 31 inventory balance is budgeted at $87,500. d. Selling and administrative expenses for May are budgeted at $79,500, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $6,000 for the month. e. The note payable on the April 30 balance sheet will be paid during May, with $105 in interest. (All of the interest relates to May.) f. New refrigerating equipment costing $11,800 will be purchased for cash during May. g. During May, the company will borrow $25,100 from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year. 1. Calculate the expected cash collections from customers. 2. Calculate the expected cash disbursements for merchandise purchases. 3. Prepare a cash budget. 4. Prepare a budgeted income statement. 5. Prepare an end-of-month budgeted balance sheet.