Can I please get help with the three highlighted sections? I keep getting them wrong. I attached the file with all of the information. Any help would be appreciated!

BUS-FP4061 - Managerial Accounting Principles Assessment 8: Master Budget and Flexible Budget Preparation Worksheet Part A Solve the given problem based on the following scenario. The managers of Megacorp need you to create the master budget for the months of January, February, and Ma Megacorp Estimated Balance Sheet Assets ($) Cash Accounts receivable Inventory Total current assets Equipment Less accumulated depreciation Net equipment Liabilities and Eq Accounts payable Bank loan payable Taxes payable (due 3/15/2014) Total liabilities Common stock Retained earnings Total stockholders' equity Use the following data to prepare the master budget. A single product of Megacorp can be purchased for $25 per unit and resold for $5 The anticipated inventory level on December 31, 2013, is 2,500 units. This is actually more than its desired level for 2014, which is 20% of January's projected sales (in units). Projected sales are: 5,250 units for January 6,750 units for February 8,250 units for March 7,500 units for April The total sales consists of 25% cash sales and 75% credit sales. 60% of credit sales is collected in the first month after the sale, and 40% is collec in the second month after the sale. $93,750 of the accounts receivable balance for December 31, 2013, is collected i January and $300,000 is collected in February. 20% of the payment for merchandise purchases is made one month after the purchase, and 80% is made in the second month. $60,000 of the balance of accounts payable for December 31, 2013, is paid in January, and $210,000 is paid in February. Salaries for salespersons average $45,000 per year. In addition to this, a sales commission equal to 20% of each salesperson's sales is paid on a monthly basis Salaries for general administrative staff average $108,000 per year. Each month, $1,500 is paid for maintainance expenses. The December 2013 balance sheet reflects an equipment purchase in January 20 Using the straight-line method, depreciation will occur over 8 years, with no salvage value. A full month's depreciation is recognized in the month in which the asset is purchased. The following new equipment purchases are projected for the next quarter: $27,000 in January $72,000 in February $21,600 in March The company has negotiated to purchase land for $112,500, which will be paid on the last day of March, in cash. Megacorp has arranged an agreement with its bank to take additional loans as needed. The bank charges 12% interest per year. Megacorp pays interest on t monthly beginning balance at the end of each month. The company may make full or partial loan payments on the last day of the month. According to this agreement with the bank, the minimum ending cash balance each month must be $18,750. The first quarter's income tax is paid on April 15 at a tax rate of 35%. Using the data provided, prepare the master budget for the first quarter of 2014, including all the following budgets: 1. Monthly sales budgets (showing both budgeted unit sales and dollar sales) 2. Monthly merchandise purchases budgets 3. Monthly selling expense budgets 4. Monthly general and administrative expense budgets 5. Monthly capital expenditures budgets 6. Monthly cash budgets 7. Budgeted income statement for the entire first quarter (not for each month) 8. Budgeted balance sheet as of March 31, 2014 Note: Round numbers to the nearest dollar and use supporting calculations. Megacorp Sales Budgets January, February, and March 2014 Budgeted Units Jan. Feb. Mar. 5,250 6,750 8,250 Megacorp Merchandise Purchas January, February, and Sales in units add: closing stock (units) Less: opening stock (units) Purchase in units Purchase price (per unit) Total purchases Megacor Selling Expense January, February, an Commissions Salaries Megacor General and Administrative January, February, an Maintenance expense Salaries Megacorp Capital Expenditures Budge January, February, and March January Equipment Land Megacorp Cash Budgets January, February, and March Cash beginning bal. Cash receipts Available cash Cash payments: Dir. Mat Dir. Lab S&A expenses Man. Overhead Inc. tax Equipment Dividends Total payments in cash Balance, available cash less: short term loan repayment less: 1% interest on loan Ending cash balance Supporting calculations January Note A: Cash receipts from customers sales via cash cash via credit sales Total 5250 X 25% X 50 Note B: Cash payments for merchandise Megacorp Budgeted Income Statement For Three Months Ended March 2014 Sales COGS Operating Exps: S&A Net operating income January 262,500 10,473 Feburary 337,500 158,143 66,750 185,278 81,750 97,608 Before taxes net income Income tax net income 185,278 64,847 120,430 97,608 34,163 63,445 Megacorp Budgeted Balance Sheet March 31, 2014 Assets Current assets: Cash Acc. Receivables (65,802.50) 288,750.00 Raw materials Finished goods Total CA's Fixed assets: Gross equpiment Accum. Depreciation Total FA's Total assets 80,000.00 29,775.00 332,722.50 600,000.00 (210,000.00) 390,000.00 769,407.00 incorrect Principles Preparation Worksheet udget for the months of January, February, and March of 2014. Megacorp Estimated Balance Sheet (as of December 31, 2013) Assets ($) Total assets Liabilities and Equity ($) Total liabilities and equity can be purchased for $25 per unit and resold for $50 per unit. on December 31, 2013, is 2,500 units. esired level for 2014, which is 20% of January's ected sales are: s for January s for February s for March % cash sales and 75% credit sales. d in the first month after the sale, and 40% is collected vable balance for December 31, 2013, is collected in cted in February. andise purchases is made one month after the the second month. ounts payable for December 31, 2013, is paid in in February. age $45,000 per year. In addition to this, a sales ach salesperson's sales is paid on a monthly basis. ative staff average $108,000 per year. r maintainance expenses. sheet reflects an equipment purchase in January 2013. , depreciation will occur over 8 years, with no epreciation is recognized in the month in which the purchases are projected for the next quarter: o purchase land for $112,500, which will be paid on reement with its bank to take additional loans 12% interest per year. Megacorp pays interest on the the end of each month. The company may make n the last day of the month. According to this minimum ending cash balance each month must s paid on April 15 at a tax rate of 35%. irst quarter of 2014, ng both budgeted unit sales and dollar sales) es budgets ative expense budgets or the entire first quarter (not for each month) March 31, 2014 ng calculations. Megacorp Sales Budgets January, February, and March 2014 Budgeted Unit Price Budgeted Total Dollars $ 50 $ 262,500 50 337,500 50 412,500 $ 1,012,500 Megacorp Merchandise Purchases Budgets January, February, and March 2014 January ### February 5,250 1,350 2,500 4,100 25 102,500 6,750 1,650 1,350 7,050 ### 176,250 Megacorp Selling Expenses Budget January, February, and March 2014 January February 52,500 67,500 3,750 ### 56,250 71,250 $ Megacorp General and Administrative Expenses Budget January, February, and March 2014 January February 1,500 ### 9,000 ### 10,500 10,500 $ $ $ Megacorp Capital Expenditures Budget January, February, and March 2014 January 27,000 $ 27,000 $ Megacorp Cash Budgets January, February, and March 2014 January 27,000 65,625 92,625 February 72,000 ### 72,000 $ February (211,968) 285,000 73,033 200,500### ### 21,375### ### 66,750### ### 3,848 0 292,473 (199,848) 12,000 120 (211,968) incorrect (34,750) 52,875 81,750 9,518 ### 10,000 119,393 (46,360) (46,360) incorrect January February 65625 93750 159,375 $ 60,000 6750 X 25% X 50 300,000+118125 210000+20500 Megacorp Budgeted Income Statement For Three Months Ended March 2014 March Total 412,500 212,185 84,375 418,125 502,500 $ 230,500 1,012,500 380,800 96,750 103,565 245,250 386,450 103,565 36,248 67,317 386,450 135,258 251,193 incorrect Megacorp Budgeted Balance Sheet March 31, 2014 Liabilities Accounts Payable Total Current Liabilities Long term notes payable 120,500 Equity Common Stock Retained Earnings Net Income Retained Earnings Total Equity Total Liabilities and Equity 208,788 241,193 27,000 393,750 112,500 533,250 405,000 (50,625) 354,375 887,625 270,000 11,250 67,500 348,750 354,375 184,500 538,875 887,625 March 8,250 1,500 1,650 8,100 ### 202,500 March 82,500 3,750 86,250 March $ 1,500 9,000 10,500 Total 19,250 25 ### 481,250 Total 202,500 11,250 213,750 Total $ 4,500 27,000 31,500 March $ $ y $ 21,600 112,500 134,100 March (46,360) 360,000 313,640 75,750 60,750 96,750 10,935 135,258 ### 379,443 (65,803) (65,803) incorrect March Total 8250 X 25% X 50 78750+151875 103,125 230,625 333,750 995,625 ### 82000+35250 120,500.00 500,000.00 $ 117,250 $ 407,750 335,000.00 449,980.50 784,980.50 1,433,544.50 incorrect Input values Company name Megacorp Balance sheet date Ending date of first quarter 12/31/2013 3/31/2014 Master budget for January February March April Megacorp Estimated Balance Sheet (as of December 31, 2013) Assets ($) Cash Accounts receivable Inventory Total current assets Equipment Less accumulated depreciation Net equipment Total assets Liabilities and Equity ($) Accounts payable Bank loan payable Taxes payable (due 3/15/2014) Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and equity Unit purchase price Unit sale price Anticipated inventory on December 31, 2013 Ratio of inventory to future sales January projected sales February projected sales March projected sales April projected sales Cash sales (percentage of total sales) Credit sales (percentage of total sales) % of credit sales collected in the first month after sales % of credit sales collected in the second month after sales Accounts receivable for December 31, 2013 - collected in January Accounts receivable for December 31, 2013 - collected in February % of purchases paid for one month after the purchase % of purchases paid for two months after the purchase Accounts payable for December 31, 2013 - paid in January Accounts payable for December 31, 2013 - paid in February Average salary of salespersons Sales commission as a percentage of each salesperson's sales General administrative staff annual salaries Monthly maintenance expenses Month of equipment purchase January equipment purchases February equipment purchases March equipment purchases Purchase price of land Yearly bank interest Minimum monthly ending cash balance Date of payment of first quarter's income tax Tax rate Years over which depreciation occurs Period for which master budget is prepared Sales Cost of Goods Sold Operating Expenses Selling & Administration Net Income From Operations Net Income Before Taxes Federal Income Tax Net Income Jan Feb Mar Total 262,500 337,500 412,500 1,012,500 10,473 158,143 212,185 380,800 66,750 185,278 81,750 97,608 96,750 103,565 245,250 386,450 185,278 64,847 120,430 97,608 34,163 63,445 103,565 36,248 67,317 386,450 135,258 251,193 December 31, 2013) 27,000 393,750 112,500 533,250 405,000 (50,625) 354,375 887,625 ) 270,000 11,250 67,500 348,750 354,375 184,500 538,875 887,625 1 $25 $50 2500 20% 5250 6750 8250 7500 25% 75% 60% 40% $93,750 $300,000 20% 100% 1 units of next month's desired sales units units units units 1 1 80% $60,000 1 $210,000 $45,000 20% $108,000 $1,500 January 2013 $27,000 $72,000 $21,600 $112,500 12% $18,750 15-Apr 35% 8 January, February, and March 2014