Comprehensive Budgeting Problem To be completed using Excel. The Highlander Corporation Balance Sheet December 31, 2019 Assets Cash $ 6,595 Accounts Receivable 10,000 Finished Goods (575 units x $7.00 per unit 4,025 Raw Materials (2,760 square inches @ $0.50 per square inch) 1,380 Plant and Equipment $ 60,000 Less: Accumulated Depreciation 15,000 45,000 Total Assets 67,000 Liabilities Trade Accounts Payable 9,000 9,000 Stockholders Equity Common Stock 33,000 Retained Earnings 25,000 Total Stockholders Equity 58,000 Total liabilities & Stockholders equity $ 67,000 In preparation for developing the master budget for the first three months of 2020, the following has been extracted from the companys accounting records 1. All sales are made on account at $25 per unit. Sixty percent of the sales are collected in the month of sale, the remaining 40% are collected in the following month. Forecast sales for the first five months of 2020 are: January, 1,800 units; February, 2,000 units; March, 2,100 units; April, 2,000 units; May 2,200 units. 2. Management wants to maintain the finished goods inventory at 30% of the following months sales. 3. Watson uses four square inches of direct materials in each finished unit. The direct material prices have been stable and are expected to remain so over the next six months. Management wants to maintain the ending direct materials inventory at 60% of the following months production needs. 4. 70% of all purchases are paid in the month of purchase; the remaining 30% is paid in the subsequent month. 5. Watsons product requires 30 minutes of direct labor time. Each hour of direct labor costs $8. Additionally, factory overhead is charged to products at a rate of $4 per labor hour. 6. Equipment depreciation for 2020(already included in the factory overhead) will be $6,000 ($500 per month). 7. No new equipment will be purchased and no new common stock will be issued during 2020. 8. Operating expenses, all paid in cash, are expected to be $2,500 in January and grow by 1% each month after that. 9. Beginning and ending Work-In-Process inventories are insignificant and can be ignored. Prepare the following for January, February and March of 2020: H. a budgeted income statement I. a budgeted balance sheet