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. Assets Cash $ 74,000 Accounts receivable ($26,000 February sales; $320,000 March sales) 346,000 Inventory 104,000 Prepaid insurance 21,000 Fixed assets, net of depreciation 950.000

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. Assets Cash $ 74,000 Accounts receivable ($26,000 February sales; $320,000 March sales) 346,000 Inventory 104,000 Prepaid insurance 21,000 Fixed assets, net of depreciation 950.000 Total assets $1,495.000 Liabilities and Shareholders' Equity Accounts payable $ 100.000 Dividends payable 15,000 Common shares 800,000 Retained earnings 580.000 Total liabilities and shareholders' equity $1.495,000 The company wants a minimum ending cash balance each month of $50,000. All borrowing is done at the beginning of the month, with any repayments made at the end of the month. The interest rate on these loans is 1% per month and must be paid at the end of each month based on the outstanding loan balance for that month. Required:Prepare a master budget for the three-month period ending June 30. Include the following detailed budgets: 1. A sales budget by month and in total. 2. A schedule of expected cash collections from sales, by month and in total. 3. A merchandise purchases budget in units and in dollars. Show the budget by month and in total. $1,495,000 Liabilities and Shareholders' Equity Accounts payable $ 100,000 Dividends payable 15,000 Common shares 800,000 Retained earnings 580,000 Total liabilities and shareholders' equity $1.495,000 The company wants a minimum ending cash balance each month of $50,000. All borrowing is done at the beginning of the month, with any repayments made at the end of the month. The interest rate on these loans is 1% per month and must be paid at the end of each month based on the outstanding loan balance for that month. Required:Prepare a master budget for the three-month period ending June 30. Include the following detailed budgets: 1. A sales budget by month and in total. 2. A schedule of expected cash collections from sales, by month and in total. 3. A merchandise purchases budget in units and in dollars. Show the budget by month and in total. 4. A schedule of expected cash disbursements for merchandise purchases, by month and in total. A budgeted income statement for the three-month period ending June 30. Use the variable costing approach

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