4. Intercoastal's president, Davies-Lowry, has indicated that the firm should invest $110,000 in an automated inventory-handling system to control the movement of inventory in the firm's warehouse just after the new year begins. These equipment purchases will be financed primarily from the firm's cash and marketable securities However, Davies-Lowry believes that Intercoastal needs to keep a minimum cash balance of $25,000. If necessary, the remainder of the equipment purchases will be financed using short-term credit from a local bank The minimum period for such a loan is three months. Hanson believes short-term interest rates will be 10 percent per year at the time of the equipment purchases. If a loan is necessary, Davies-Lowry has decided it should be paid off by the end of the first quarter if possible. 5. Intercoastal's board of directors has indicated an intention to declare and pay dividends of $50,000 on the last 6. The interest on any short-term borrowing will be paid when the loan is repaid. Interest on Intercoastal's bonds is 7. Property taxes are paid semiannually on February 28 and August 31 for the preceding six-month period Required: day of each quarter. paid semiannually on January 31 and July 31 for the preceding six-month period Prepare Intercoastal Electronics Company's master budget for the first quarter of 20x1 by completing the following schedules and statements. 4. Intercoastal's president, Davies-Lowry, has indicated that the firm should invest $110,000 in an automated inventory-handling system to control the movement of inventory in the firm's warehouse just after the new year begins. These equipment purchases will be financed primarily from the firm's cash and marketable securities However, Davies-Lowry believes that Intercoastal needs to keep a minimum cash balance of $25,000. If necessary, the remainder of the equipment purchases will be financed using short-term credit from a local bank The minimum period for such a loan is three months. Hanson believes short-term interest rates will be 10 percent per year at the time of the equipment purchases. If a loan is necessary, Davies-Lowry has decided it should be paid off by the end of the first quarter if possible. 5. Intercoastal's board of directors has indicated an intention to declare and pay dividends of $50,000 on the last 6. The interest on any short-term borrowing will be paid when the loan is repaid. Interest on Intercoastal's bonds is 7. Property taxes are paid semiannually on February 28 and August 31 for the preceding six-month period Required: day of each quarter. paid semiannually on January 31 and July 31 for the preceding six-month period Prepare Intercoastal Electronics Company's master budget for the first quarter of 20x1 by completing the following schedules and statements