California Surfing, a merchandiser for surf boards is beginning its sales operations on January 1, 2016. The selling price for each board is $30. Expected sales, in units, are: January 400, February 350, March 500, April 800. 20% of customers purchase on credit, and they are given a credit of two months. The cost price of each board is $10. California Surfing has negotiated credit terms with its vendors for 30 days. The company wishes to maintain an ending inventory each month equaling 30% of next months sales. The following are the expenditures per month: Rent $2000 90% selling, 10% general Utilities $ 400 60% selling Salaries $5000 70% selling Depreciation $1000 50% selling Advertising $500 Commission $3 per board The company plans to prepay the rent for the entire first quarter in January. Salaries and Advertising are paid in the month in which they are incurred. All the other expenses are paid the following month, except commission, which is paid after 2 months. Dividends $ 500 are paid each month. The beginning cash balance for January is $50,000. California Surf Board wishes to maintain a cash balance of at least $5,000 each month and can borrow funds if necessary. Prepare the Master Budget for the 1st Quarter. Additionally, prepare the budgeted income statement and the CVP income statement for the 1st quarter. Your Master Budget must be prepared on an Excel Spreadsheet. It should have multiple worksheets 1) Key Information Sheet and 2) Sales Budget 3) Purchases Budget 4)Selling Expenses Budget 5) General and Administrative Expenses Budget 6) Cash Budget 7) Budgeted Income Statement 8) CVP Income Statement with break even analysis. All the worksheets should be renamed appropriately. All the worksheets (excluding worksheet 1) should be 100% sensitive with respect to the numbers. (NO NUMBERS SHOULD BE TYPED IN THE SECOND WORK SHEET).