BUSA202 MASTER BUDGET PROJECT SUMMER SESSION II 2022 Data: Forester Company, a camping gear merchandising firm, prepares its master budget on a quarterly basis. The following data have been assembled to assist in the preparation of the master budget for the third quarter of 2022 . a. On June 30,2022 , the company prepared the following balance sheet: b. Sales for June 2022 weres $500,000. Budgeted sales for July 2022 through October 2022 are as follows: c. Sales are 30% for cash and 70% on credit. 50% of each month's credit sales are collected in the month of sale and the remaining 50% is collected in the month after sale; there are no uncollectible accounts anticipated. The accounts receivable balance of $175,000 on June 30,2022 is the result of June credit sales to be paid in July ($500,000 June sales x 70% credit sales 50% to be collected in the month after sale). d. The company's budgeted cost of goods sold is 55% of budgeted sales. e. Monthly expenses are budgeted as follows: salaries and wages, $50,000 per month plus 20% of sales; shipping, 2% of sales; advertising, $12,500 per month; and depreciation, $2,500 per month. f. At the end of each month, management desires inventory on hand to be equal to 15% of the following month's sales, stated at cost. g. Inventory purchases are all on credit. 40% of each month's purchases are paid for in the month of purchase and the remaining 60% is paid for in the month after purchase. The accounts payable balance of $110,000 on June 30,2022 is the result of June purchases to be paid in July $500,000 June sales 55% cost of goods sold ratio 60% to be paid in the month after sale). h. Land purchases during the quarter will be as follows: July, $180,000; September, $191,008. i. Dividends totaling $25,000 will be declared and paid in September. j. The company wants to maintain a minimum cash balance of $100,000. An open line of credit is available at a local bank. All borrowing is done at the beginning of the month and all repay-ments of principal are made at the end of a month. Interest is repaid only at the time of repayment of principal and is accrued between the time the borrowing is made and the principal is repaid. The annual interest rate is 12% and interest is calculated to the nearest whole month (e.g., 1/12,2/12, etc.). Budgeted Income Statement: On a separate page or sheet in Excel, prepare a Budgeted Income Statement for the quarter ended September 30,2022 using good form (heading, titles, underlines, etc. as discussed in class). The income statement must be prepared using the contribution margin approach as shown in class. Be sure to list all individual variable costs and fixed costs within those sections. You should classify interest as a fixed cost