Acctg 322 Assignment, Fall 2019  Requirement:Complete the various budget schedules usingExcel. Submit one hard copy per group and email me your Excel spreadsheet. In Excel use formulas wherever possible. Avoid "hard coding" because I will test the flexibility of your spread sheet by changing certain cells such as sales. To be discussed further in class as well.  The Distribution Center of 123 Oil and Gas Company wants a master budget for the next three months, beginning January 1st. It desires an endingminimum cash balance of $4,000 eachmonth. Sales are forecasted at an average selling price/transfer price of$4 perwidget[AE1]. In January, the Distribution Centre is beginning just-in-time deliveries from suppliers, which means that purchases equal expected sales. The December 31 inventory balance will be drawn down to$5,000, which will be the desired ending inventory thereafter.Purchase price per widget is $2.[AE2]Purchases during any given month arepaid in full during the following month. All sales are on credit, payable within thirty days, but experience has shown that 60 percent of current sales are collected in the current month, 30 percent in the next month, and 10 percent in the month thereafter. Bad debts are negligible. The Distribution Centre sells to related sister corporations as well as outside/external sales. The following are some of the expenses for the Distribution Centre:   Wages and salaries$12,000/month Insurance expired100/month Depreciation200/month Miscellaneous2,000/month Rent200/month + 10% of quarterly sales over $10,000   Cash dividends of $1,000 are to be paid quarterly, beginning January 15, and are declared on the fifteenth of the previous month. All operating expenses are paid as incurred, except insurance, depreciation, and rent. Rent of $200 is paid at the beginning of each month and the additional 10 percent of sales is paid quarterly on the tenth of the month following the quarter. The next settlement is due January 10.   The company plans to buy some new office fixtures for $2,000 cash in March. To the distribution company this will be considered a capital purchase.   Money can be borrowed and repaid in multiples of $500, at an interest rate of 12 percent per annum. Management wants to minimize borrowing and repay rapidly. Interest is computed and paid when the principal is repaid. Assume that borrowing takes place at the beginning, and repayment at the end, of the months in question. Money is never borrowed at the beginning and repaid at the end of the same month. Compute interest to the nearest dollar.  ASSETS AS OF DECEMBER 31,   LIABILITIES AS OF DECEMBER 31,  Cash $4,000  Accounts payable(merchandise) $28,750 Accounts receivable 16,000  Dividends payable 1,000 Inventory* 31,250  Rent payable 6,000 Prepaid insurance 1,200   $35,750 Fixed assets, net 10,000     $62,450      *November 30 inventory balance = $12,500  Recent and forecasted sales:  October$30,000December$20,000February$60,000April$36,000 November$20,000January$50,000March$30,000   Required  Prepare a master budget for the following schedules identified below. Use Excel and incorporate a formula based spread sheet whenever possible. I will be altering the sales figures in your submitted Excel spread sheet to test your formulas.                          Work Sheet/Template  Cash Collections Schedule 50,000 sales60,000 sales30,000   January February March  60% of current months sale 30,000 36,000 18,000  30% of previous months sale  15,000 18,000  10% of second previous months sale   5,000 Total collections  30,000 51,000 41,000   Purchase Budget    December January February March Desired Ending Inventory[AE3]  31,250[AE4] 5,000 5,000 5,000 Cost of Goods Sold  10,000[AE5]    Total Needed[AE6]  41,250    Beginning Inventory  12,500    Purchases  28,750                    Statement of Cash Receipts and Disbursements   January February March Cash Balance Beginning      Plus Cash Collections     =Cash Available Before Financing     Less Cash Disbursements:     Purchases     Rent     Wage and Salaries     Miscellaneous Expenses     Dividends     Purchase of Fixtures     Total Disbursements     Plus Minimum Cash Desired     Total Cash Needed     Excess (Deficiency)     Financing:      Borrowing, at the beginning of period     Repayment, at the end of period     Interest at 12% per annum      Cash Balance, end            Income Statement for the 3 months ending March 31   Sales   Less Cost of Goods Sold   =Gross Profit   Less Operating Expenses:   ?  ?   ?   ?   ?    Net Income from Operations   Interest Expense   Net Income                           Balance Sheet as of March 31:   Assets   Current Assets:   Cash   Accounts Receivable   Inventory   Prepaid   Fixed Assets   Total Assets   Liabilities:   Accounts Payable   Rent Payable   Dividend Payable   Shareholders' Equity   Retained Earnings and Share Capital        [AE1]Selling at $4  [AE2]Buying at $2 [AE3]Actual inventory [AE4]Partial balance sheet [AE5]50% of December sales [AE6]Total Available