561.000 Mahendra Toys is a wholesale distributor of gifts and accessories. The following data relates to their balance sheet as of 31 December 2019 Current Assets Cash $ 8.000 Accounts Receivable $ 42,000 Inventory $ 10.200 Building and equipment, Nett $136.000 Total Assets $196,200 Current Liabilities Accounts Payable $ 30,200 Common Shares $120,000 Retained Earnings $ 46,000 Total abilities & Owner's Equity $196,200 a. The gross margin for the company is 40% of sales. b. Actual and budgeted sales data are as follows December Actual $80,000 Aanuary February $91,000 March $66,000 April $70,000 Sales are 30% in cash and 20% in credit. Credit sales are collected in the month following the sale. d. Each month's ending inventory should be 25% of the following month's budgeted cost of goods sold e 30% of the month's inventory purchases are paid for in the month of purchase the remaining 70% is paid for in the following month Monthly expenses are as follows: salaries, $10,000, rent, 56,000; advertisements, $2,000, other expenses (excluding depreciation), 12% of sales. Depreciation is $3,200 for the quarter and includes depreciation on new assets acquired during the quarter. & Equipment will be acquired for cash: $4,000 in January and $6,000 in March. Management would like to maintain a minimum cash balance of $6,000 at the end of each month Assume the company can borrow at Ox interest and they do not pay any income tax. All borrowing occurs at the beginning of a month. The company will, as far as it is able, repay outstanding loans at the end of each month Question 1: Prepare the following budgets for each of the first three months of 2020. [20 Marks] Schedule of Expected Cash Collection Merchandise Purchase Budget Schedule of Cash Disbursement for Purchase Schedule of Cash Disbursement for S&A expenses Cash Budget Question 2: Prepare a budgeted income statement for the first three months of 2020 and a budgeted balance sheet as of March 31, 2020 [ 10 Marks