Could you please help me with this problem:

You have just been hired as a new management trainee by Quik-Flik Sales Company, a nationwide distributor of a revolutionary new flashlight. The company has an exclusive franchise on distribution of the flashlight, and sales have grown so rapidly over the last few years that it has become necessary to add new members to the management team. You have been given direct 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 anxious to make a favorable impression on the president and have assembled the information below.

The company desires a minimum ending cash balance each month of $10,000. The flashlights are forecast to sell for $10 each. Recent and forecast sales in units are:

January (actual) 20,000 June 60,000

February (actual) 24,000 July 40,000

March (actual) 28,000 August 36,000

April 35,000 September 32,000

May 45,000

The large buildup in sales before and during the month of June is due to Father's Day. Ending inventories are supposed to equal 90 percent of the next month's sales in units. The flashlights cost the company $7 each.

Purchases are paid for as follows: 50 percent in the month of purchase and the remaining 50 percent in the following month. All sales are on credit, with no discount, and payable within 15 days. The company has found, however, that only 25 percent of a month's sales are collected by month-end. An additional 50 percent is collected in the month following, and the remaining 25 percent is collected in the second month following. Bad debts have been negligible.

The company's monthly operating expenses are given below:

Variable:

Sales commissions $1 per flashlight

Fixed:

Wages and salaries $32,000

Utilities 15,000

Insurance expired 1,200

Depreciation 1,500

Miscellaneous 3,000

All operating expenses are paid during the month, in cash, with the exception of depreciation and insurance expired. New fixed assets will be purchased during May for $25,000 cash. The company declares dividends of $12,000 each quarter, payable in the first month of the following quarter. The company's balance sheet at March 31 is given on the next page.

Assets

Cash $ 14,000

Accounts receivable ($60,000 February sales; $210,000 March sales) 270,000

Inventory (31,500 units) 220,500

Unexpired insurance 14,400

Fixed assets, net of depreciation 172,700

Total Assets $691,600

Liabilities and Stockholders' Equity

Accounts payable, purchases $ 120,050

Dividends payable 12,000

Capital Stock, no par 300,000

Retained earnings 259,550

Total liabilities and stockholders' equity $691,600

The company can borrow money from its bank at 6 percent annual interest. All borrowing must be done at the beginning of a month, and repayments must be made at the end of a month. Repayments of principal must be in round $1,000 amounts. Borrowing (and payments of interest) can be in any amount.

Interest is computed and paid at the end of each quarter on all loans outstanding during the quarter. Round all interest payments to the nearest whole dollar. Compute interest on whole months (1/12, 2/12, and so forth). The company wishes to use any excess cash to pay loans off as rapidly as possible.

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.

b. A schedule of expected cash collections from sales and accounts receivable, by month and for the entire quarter.

c. An inventory purchases budget in units and in dollars. Show the budget by month and in total.

d. A schedule of budgeted cash disbursements for purchases of inventory, by month and in total for the quarter.

2. A cash budget. Show the budget by month and in total.

3. A budgeted income statement for the three-month period ending June 30.

4. A budgeted balance sheet as of June 30.