Cz is merchandising company engaged in the purchasing and selling of electrical appliances.you as a managemet accountat have been asked to prepare a complete master budget for your store for june,july, and august, so you gather the following data as may 31,2005:

Cash 21,000

Inventory 300000

Account receivable 261,000

Net furniture & fixtures 120,000

Total assets 702,000

Account payable 340,000

Owners equity 362,000

Total liabilities & owner equity 702,000

Project sales

April 200,000

May 250,000

June 500,000

July 300,000

August 300,000

September 200,000

Credit sales are 90% of total sale. Credit account are collected 80% in the month following the sale and 20% in the next following month.average gross profit is 40%.all purchase are paid for in the month following purchase.

Saleries,wages & commission average 20% of sales:all other variable expense are 4% of sales.fixed expense for rent,property taxes, and miscellaneous payroll and other items are 40,000 monthly.assume that these variables and fixed expenses require cash disbursement cash month.depreciation is 20,000 monthly.

In june, 40,000 is going to be disbursed for fixture acquired in may.the may 31 balance of accounts payable includes this amount.

Assume that a minimum cash balance of 20,000 is to be maintained.also assume that all borrowing are effective at the begining of the month and all repayments are made at the end of the month of repayment.Interest is paid only at the repaying principal.interest rate is 12% per annum: round interest computation to the nearest ten dollar.

Required

1. Prepare the sales budget

2. Prepare the cash collection budget

3. Prepare a budget income statement for the coming quarter

4. Prepare the budget balance sheet