Budgets $-100$ points

Henry Corporation is preparing its master budget for the quarter ending March $31.$ It sells a single product for $$30$ a unit. Budgeted sales are $40\%$ cash and $60\%$ on credit. All credit sales are collected in the month following the sales. Budgeted sales for the next four months follow:

$\backslash$table$[[$Sales in Units $.................,$January,February,March,April$]]$

At December $31,$ the balance in accounts receivable is $$12,000,$ which represents the uncollected portion of December sales. The company desires merchandise inventory equal to $50\%$ of the next month's sales in units. The December $31$ balance of merchandise inventory is $425$ units, and inventory cost is $$15$ per unit. Forty percent of the purchases are paid in the month of purchase and $60\%$ are paid in the following month. At December $31,$ the balance of Accounts Payable is $$10,000,$ which represents the unpaid portion of December's purchases.

Operating expenses are paid in the month incurred and consist of:

Sales commissions $(10\%$ of sales$)$

Freight $(5\%$ of sales$)$

Office salaries per month$)$

Rent per month$)$

Total Fixed OH $($$$8,000$ per month$)$

Depreciation expense is $$4,000$ per month. The income tax rate is $40\%,$ and income taxes will be paid on April $1.$ A minimum cash balance of $$10,000$ is required, and the cash balance at December $31$ is $$10,200.$ Loans are obtained at the end of a month in which a cash shortage occurs. Interest is $1\%$ per month, based on the beginning of the month loan balance, and must be paid each month $($The interest payment is rounded to the nearest whole dollar$).$ If the ending cash balance exceeds the minimum, the excess will be applied to repaying any outstanding loan balance. At December $31,$ the loan balance is $$0.$

Prepare the following budgets $($round all dollar amounts to the nearest whole dollar$)$ for each of the months of January, February, and March that includes the:

Schedule of cash receipts

Merchandise purchases budget

Cash budget, including information on the loan balance $($January only$)$