1. Cambridge, Inc. is preparing its master budget for the quarter ending 25 a unit. Budget sales are 40% cash and 60% on eredit. All credit sales are collec the sales. Budgeted sales for the next four months follow ls a single product for in the month following March 31. It scint Sales in units 1.200 1,000 1,600 1.400 At December 31, the balance in Accounts Receivable is $10,000, which represents the uncollect December sales. The company desires merchandise The December 31 balance of merchandise inventory is 340 units, and inventory cost is $10 per un percent of the purchases are paid in the month of purchase and 60%are paid in the following month. At December 31, the balance of Accounts Payable is $8,000, which represents the unpaid portion of De purchases. Operating expenses are paid in the month incurred and consist of Sales commissions (10% of sales) Freight (2% of sales) Office salaries ($2,400 per month) Rent ($4,800 per month) Depreciation expense is $4,000 per month. inventory equal to 30% of the next month's sales in units. unit. Forty Decembers The income tax rate is 40%, and income taxes will be paid on April 1 A minimum cash balance o required, and the cash balance at December 31 is $10,200. Loans are obtained at the end of a month in cash shortage occurs. Inte paid each month. If an excess of cash exists, loan repayments are made at the end of the month. At December 31, the loan balance is $O. f S10,000 is which a rest is 1% per month, based on the beginning of the month loan balance, and must be Prepare a master budget (round all dollar amounts to the nearest whole dollar) for each of the months of January, February, and March that includes the: Sales budget Table of cash receipts Merchandise purchases budget Table of cash disbursements for merchandise purchases Cash budget, including information on the loan balance Budgeted income statement