339 AF211 Budget Project Hepare the following hodes for a retail company on a computer spread computer spreadsheet such as Exel Follow the format of ere your textbook Your name and section sumber should appear n one pod format. That is it should the property labeled and should start and i pe breaks in the middle There can be more than one hedges or a budget schedule N o rrample the Sales Baded and the schedule ale of Cash Collections) so long as they completely fiton Cash Collections) sokog the budgets shows in chapter 9 of your best cache. The budgets should be in good format. That is it should be po pe without having the breaks in the middle. There can be more s.gos- that some page Required: 1. Prepare a sales budget for January through May. The selling price Sur student identification number os data for the hosted ales in units by multips 10.000 lowever, bote that if your ID contains the number Ouse 10 instead units would be: For example, if the last five digits in your student the budgeted sales in units December of the previous year 10.000 80.000 86361 January 0000 0.000 10 of January through May. The selling price per unit is $50.00. Use the last five digits of he bodgeted sales in units by multiplying each number by February March 60.000 100.000 30.000 20.000 60,000 April 10,000 2. Prepare a purchases budget for January through March, and the first quarter in local. Assume that the company only sells one product that can be purchased at $500 BT unit The market for this product is very competitive and customers highly value service such as quality and on time delivery of the product. Also assume that currently it is company policy that ending inventory should equal 50% of next month's projected sales 3. Prepare a cash budget for January through March and for the first quarter in total. The company maintains a minimum cash balance of $70,000.00, and this was the balance in the cash account on January 1. Past experience shows that 40% of sales are collected in the month of the sale, and 60% in the month following the sale. Selling cost is $12 per unit sold. Other expenses include $35,000 per month for rent, $14,000 for advertising, and 566,000 per month for depreciation. All costs are paid in the current month except inventory purchases, which are paid in the month following the purchase (ie. January purchases are paid in February). The company has an open line of credit with a bank and can borrow at an annual rate of 12%. For simplification assume that all loans are made at the beginning of the month when borrowing is needed and repayments are made at the end of a month if there is enough cash to make the payment. Also, interest associated with a loan is only paid at the time when that loan or a portion thereof is paid. Additionally, all loans and repayments (not the interest portion) can cely be made in increments of 51000 and the company would like to pay its debts, or a portion thereof, as soon as it has enough cash to do so. 4. Prepare the Budgeted Income Statement based on the information given above, Label the budgets prepared in Steps 14 as budget scenario A. 5. Repeat steps 2-4 for budget scenarios Band C using the following Desired Ending Inventory assumptions Linding Inventory ISE 6. Write a brief analysis of the three inventory policies depicted in the budget scenarios A, B and C and recommend a policy that the company should implement. Give reasons for your recommendation. Your write-up should be based on the results you obtained from the analyses in steps 1-5 above. Assume that you are writing on behalf of a professional consultant advising the President of the company about the company's inventory policies. You will should be in the form of a one-page Memo to the President of the company. Organization, grammar, and spelling are important