Respond that the following statements are TRUE or FALSE:

1) Unlike a manufacturing company, the cash budget is the cornerstone for the master budget of a merchandiser.

2) For a merchandiser, the budgeted sales equals the number of units budgeted for sale multiplied by the budgeted selling price per unit.

3) The financial budget of a merchandiser is similar to that of a manufacturer.

4) The budgeted income statements of both manufacturing and merchandising companies include a calculation of gross profit.

5) While calculating the cash payments for budget selling and administrative expenses, non-cash expenses like depreciation are also considered.