1. Budgeting for Planning and Control 15% Mancini, Inc. a retailer of specialty wall papers, prepares a monthly master budget. Data for the September master budget are given below: accounts payable $53,760 a. The August 31st balance sheet: cash accounts receivable inventory building and equipment (net) $25,500 90,000 28,800 200,000 capital stock retained earnings 265,000 25,540 b. Actual sales for August and budgeted sales for September October, and November are given below: August $120,000 September 360,000 October 200,000 November 180,000 C. Sales are 25% for cash and 75% on credit. All credit sales are collected in the month following the sale. There are no bad debts. The gross margin percentage is 60% of sales. The desired ending inventory is equal to 20% of the following month's sales. One fifth of the purchases are paid for in the month of the purchase and the others are purchased on account and paid in full the following month. The monthly cash operating expenses are $80,000 including the monthly depreciation of $7,000 f. During September, Mancini Company will purchase new office equipment for $17,000 cash. Dividends of $13,500 were declared and paid in September h. The company must maintain a minimum cash balance of $25,000. A line of credit is used to maintain this balance. Borrowing will be made in increments of $1,000. All borrowing is done at the beginning of the month and repayments are made at the end of the month. The annual interest rate is 12%, paid when the loan is repaid (ignore the accrual of interest). Required: Prepare a balance sheet, income statement, and cash budget for the month of September