1. You are the new manager of the local Real Time Electronics store. Top management of Real Time Electronics is oonvinced that management trairing should include the active partiopation of store managers in the budgeting process. You have been asked to prepare a compliete master budget for your store for June, July, and August. All accounting is done centrally so you have no expert help on the premises. In addition, tomorrow the branch manager and the assistant controler will be here to examine your work at hat time, they will assist you in formulating the final budget dooument. The ide is to have you prepare the initial budget on your own so that you gain more confidence about aopounsing matters. You want to make a favorable impression on your superiors, so you gather the folowinga fnancial statement and sales data as of May 31, 20X8 (Click the loon to view the data) Read the reguirements 2(Click the icon to view the additional information) Requirement 1. Prepare a budgeted income statement for the coming June through August quarter, a cash budget for each of the next three monthe, and a budgeted belance sheet for August 31, 20x08 All operations are evaluated on a before-income-tax basis, so income taxes may be ignored here Before we prepared the budgeted income statements, cash budgets, and budgeted balance sheet, let's prepare a sales budget a schedule of cash collections from cussomers, a purchases budget, a schedule of cash disbursements for purchases, and a schedule of operating expenses and disbursements for expenses (except interest ) Begin by preparing the sales budget for the June through Augus Schedule a: Sales budget June July August 133,000 77,000 33,000 110,000 Credit sales 3,000 Cash sales67.000 190,000$ 90,000 Total sales Now prepare a schedule of cash collections from customers Schedule b: Cash collections from customers June July August For current month sales For sales from 1 month prior For sales from 2 months prior Total colections from customers Next, prepare a schedule showing the budgeted monthly purchases for May through August Schedule : Purchases budget May June July August Desired purchases Prepare a schedule of cash disbursements for purchases