Create the following budgets for each quarter and in total for the year.

Sales budget Cash collections budget Cash budget Master Budget Data

The budgeted unit sales are 500 units, 700 units, 800 units, and 1,000 units for quarters 1-4, respectively. The budgeted selling price is $50 per unit.

All sales are on credit. 50% percent of credit sales are collected in the quarter of the sale, 35% are collected in the next quarter, and the remainder is collected in the quarter after. The following data is provided to complete the cash collections budget:

1.)Q1 cash collection from prior year Q4 sales: $9,000 2.)Q1 cash collection from prior year Q3 sales: $2,000 3.)Q2 cash collection from prior year Q4 sales: $1,000

The company plans to maintain a minimum cash balance at the end of each quarter of $60,000. If the cash balance is below $60,000, the company will borrow money from the bank to meet their minimum.

All borrowings take place on the last day of the quarter, an interest rate of 2.5% per quarter, and principal and interest are paid quarterly.

The following data is provided to complete the cash budget: 1.)Beginning of the year cash balance: $70,000 2.)Q1 total cash disbursements: $26,000 3.)Q2 total cash disbursements: $41,250 4.)Q3 total cash disbursements: $29,000 5.)Q4 total cash disbursements: $38,000

Note: When completing the cash budget remember that all borrowings that place on the last day of the quarter and principal and interest payments take place in the next quarter.

*There is no information about how the repayment of borrowing will be paid, full or any proportion.