Clatk: 134 (3) Couner ACCT 27 Introduction to Managerial Meteustint rapidly cver the last tew veais that it hat become necessery to asd new members to the managethent teans. president and have assembled the irfermation below: The campany desires a minimam ending cash balance each month of 510,000 . The ties are sold to retalers for Sbi esth. fierent and forecauted wales in ursts are an follows The large buildup in sales before and during june is due to father's Day. endind arwentorita ate subposed to equal 90%6 of the next month't sales in veits. The ties cost the coenp.3ns. 55 esch. sales are on credit, with no discount, and payable within 15 day. The campany has faund, nowever, that only The company's monthly celling and administrative expentes are ziven belowi: All selling and administrative expenses are paid during the month, in cash, with the exception of depreciation and insurance explred. Land will be purchased during the month of May for $25,000cash. The company declares dividends of $12,000 each quarter, payable in the first month of the following quarter. The compan/s balance sheet at March 31 is given below: The company has an agreement with a bank that allows it to borrow in increments of $1,000 at the beginning of each month, up to a total loan balance of $160,000. The interest rate on these ioans is 1% per month, and for simplicity, we will assume that interest is not compounded. At the end of the quarter, the company would pay the bank all of the accumulated interest on the loan and as much of the loan as possible (in increment of $1,000), while retaining at least $10,000 in cash. Required: Prepare a master budget for the three-month period ending June 30 . Include the following detailed budgets: 1 a. A sales budget by month and in total. (10 marks) b. A schedule of expected cash collection from sales, by month and in total. ( 10 marks) c. A merchandise purchases budget in units and in dollars. Show the budget by month and in total. (10 marks) d. A schedule of expected cash disbursements for merchandise purchases, by month and in total. ( 10 marks) 2. A cash budget. Show the budget by month and in total ( 20 marks) 3. A budgeted income statement for the three-month period ending June 30 . Use the contribution approach. ( 20 marks) 4. A budgeted balance sheet as of June 30. (20 marks) Clatk: 134 (3) Couner ACCT 27 Introduction to Managerial Meteustint rapidly cver the last tew veais that it hat become necessery to asd new members to the managethent teans. president and have assembled the irfermation below: The campany desires a minimam ending cash balance each month of 510,000 . The ties are sold to retalers for Sbi esth. fierent and forecauted wales in ursts are an follows The large buildup in sales before and during june is due to father's Day. endind arwentorita ate subposed to equal 90%6 of the next month't sales in veits. The ties cost the coenp.3ns. 55 esch. sales are on credit, with no discount, and payable within 15 day. The campany has faund, nowever, that only The company's monthly celling and administrative expentes are ziven belowi: All selling and administrative expenses are paid during the month, in cash, with the exception of depreciation and insurance explred. Land will be purchased during the month of May for $25,000cash. The company declares dividends of $12,000 each quarter, payable in the first month of the following quarter. The compan/s balance sheet at March 31 is given below: The company has an agreement with a bank that allows it to borrow in increments of $1,000 at the beginning of each month, up to a total loan balance of $160,000. The interest rate on these ioans is 1% per month, and for simplicity, we will assume that interest is not compounded. At the end of the quarter, the company would pay the bank all of the accumulated interest on the loan and as much of the loan as possible (in increment of $1,000), while retaining at least $10,000 in cash. Required: Prepare a master budget for the three-month period ending June 30 . Include the following detailed budgets: 1 a. A sales budget by month and in total. (10 marks) b. A schedule of expected cash collection from sales, by month and in total. ( 10 marks) c. A merchandise purchases budget in units and in dollars. Show the budget by month and in total. (10 marks) d. A schedule of expected cash disbursements for merchandise purchases, by month and in total. ( 10 marks) 2. A cash budget. Show the budget by month and in total ( 20 marks) 3. A budgeted income statement for the three-month period ending June 30 . Use the contribution approach. ( 20 marks) 4. A budgeted balance sheet as of June 30. (20 marks)