Check my work 1 100 points Knockoffs Unlimited, a nationwide distributor of low-cost imitation designer necklaces, has an exclusive franchise on the distribution of the necklaces, and sales have grown so rapidly over the past few years that it has become necessary to add new members to the management team. To date, the company's budgeting practices have been inferior and at times the company has experienced a cash shortage. You have been given responsibility for all planning and budgeting Your first assignment is to prepare a master budget for the next three months, starting April 1. You are eager to make a favourable impression on the president and have assembled the information below The necklaces are sold to retailers for $10 each. Recent and forecast sales in units are as follows: January tatua Truary (act) Mare (actual April May 24,000 Fune 50.000 34,000 July 30.000 47,000 Aut 36,000 , eo lm nhim v 000 107.000 Hint Defence The large buildup in sales before and during May is due to Mother's Day Ending Inventories should be equal to 40% of the next month's sales in units. The necklaces cost the company $4 each Purchases are paid for as follows: 50% in the month of purchase and the remaining 50% in the following month. All sales are on credit, with no discount, and payable within 15 days. The company has found, however, that only 20% of a month's sales are collected by month-end. An additional 70% is collected in the following month, and the remaining fois collected in the second month following sale. Bod debts have been negligible The company's monthly selling and administrative expenses are given below. Variables Sales comission Tixed: Advertising Heat Wages and salaries Utilities Insurance Depreciation 48 of sales $224,000 22,000 115,600 10,200 4.600 22.000 Sube 1 All Selling and administrative expenses are paid during the month, in cash, with the exception of depreciation and insurance Insurance is paid on an annual basis, in November of each year. The company plans to purchase 519.200 in new equipment during May and $48,000 in new equipment during June, both purchases wil be paid inch. The company decies dividends of 576,600 each quarter payable in the first month of the following quarter. The company balance sheet of March 31 is gven below 100 point CAN Noente recebe (4.600 February $276.000 March Inventory Prepaid innance Piu Anteta, te of depreciation Alat LLAH and thareholders Buty Accounts payable Didenda payable COR shares Metalbed earning a lahat and shareholders 12.000 410,00 11.10 13,310 DRA00D 11.631.000 11. 1.600 18,000 6. Per The company wants a minimum ending cash balance each month of $50,000. All borrowing is done at the beginning of the month with any repayments made at the end of the month. The interest rate on these loans is 1% per month and must be paid at the end of each month based on the outstanding loan balance for that month Required: 1. Prepare a master budget for the three-month period ending June 30. Include the following detailed budgets a. A sales budget by month and in total May June Barter April Bales budget Budgeted sales inunta Selling price per un Total sales 0$ $ os 0 05 CHA won 1 b. A schedule of expected cash collections from sales, by month and in total 100 points KNOCKOFTS UNLIMITED Schef Expected Cat Collections April May une Quarter February March Apri May June Totalcash collections 0 0 $ 05 0$ Pet Retences CA merchandise purchases budget in units and in dollars. Show the budget by month and in total KNOCKOFFS UNLIMITED Merchandise Purchase Budget Apr May Budget sales in 0 0 Total needs 0 O Required unit purchases Unit Cost Required dollar purchases ols OS 5 05 Help Cheyen 1 d. A schedule of expected cash disbursements for merchandise purchases, by month and in to 100 point KNOCKOPFS UNLIMITED Schedule of Cash Disbursement April May June Quarter March Durch April purchases May purchases June purchases Total cash disbursement 0 0 CH DS 05 References 2. A cash budget Show the budget by month and in total, (Round your intermediate calculations and final answers to the nearest whole dollar. Also, round down your interest calculations to the next whole dollar amount Cash deficiency, repayments and Interest should be indicated by a minus sign. Do not leave any empty spaces; Input a 0 wherever it is required.) KNOCKOFFS UNLIMITED Cash Budget For the Three Months Ending June 39 A May . Cash balance beginning Add receipts from customers Total cash valable Low disbursem Purchase of inventory Advertising Check my w 1 100 points Stepood 0 Rent Salaries and wages Sales comissions bes Dividends paid Equipment purchase Total disbursements Excess deficiency of receipts over disbursements Financing Borowings Repayments Interest Total Financing Cash balance, ending 0 o 0 0 0 0 05 0 OS 5 OS 0 bon References 3. A budgeted Income statement for the three-month period ending June 30. Use the variable costing approach. KNOCKOFFS UNLIMITED Budgeted Income Statement For the Three Months Ended June 30 Variable expense 0 STEN WUDGET Help Save & Chemy 1 3. A budgeted income statement for the three-month period ending June 30. Use the variable conting approach KNOCKOFFS UNLIMITED Budgeted Income Stement For the Three Mons Ended June 19 100 points Variable expenses 0 Faxed expenses References 0 0 S O Help Seve 1 100 Du 4. A budgeted balance sheet as of June 30 KNOCKOFFS UNLIMITED Budgeted balance sheet June 30 Assets Print References 0 Total assets 5 Liabilities and Shareholders'Equity 0 Total abilities and shareholders' equity