Acctg 322 Assignment Winter Semester 2016 To Be Completed 8: Submitted in Excel Further Instructions on the Second Page The Distribution Center of 123 Oil and Gas Company wants a master budget for the next three months, beginning January lst. It desires an ending minimum cash balance of $4,000 each month. Sales are forecasted at an average selling price/transfer price of $40 per widget. 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 $20. Purchases during any given month are paid 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 expired 100/month Depreciation 200/month Miscellaneous 2,000/month Rent 200/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