Data for a companys operations follow: Sales are budgeted at $$330,000$ for April, $$300,000$ for May, and $$320,000$ for June. Collections are expected to be $85\%$ in the month of sale and $15\%$ in the month following the sale. The cost of goods sold is $60\%$ of sales. The company desires an ending merchandise inventory equal to $80\%$ of the cost of goods sold in the following month. Payment for merchandise is made in the month following the purchase. Other monthly selling and administrative expenses to be paid in cash are $$21,200.$ Monthly depreciation $($on office equipment$)$ is $$21,000.$ The company plans to purchase $$150,000$ of equipment with cash in April. You may ignore depreciation on the new assets. The company plans to declare and pay a dividend of $$25,000$ in May. The company must have a minimum cash balance each month of $$40,000.$ The company has a line of credit with a bank. The company can borrow in increments of $$1,000$ at the beginning of each month. The interest rate on these loans is $1\%$ per month, and we assume a simple interest calculation. At the end of each month, the company pays the bank as much of the loan as possible $($in increments of $$1,000),$ while still retaining at least $$40,000$ in cash. For simplicity, the company pays the bank the interest related to the outstanding loan for one month at the beginning of the next month. For example, the interest on any outstanding loan balance at the end of April is paid in May. Ignore taxes.Balance SheetMarch $31$Assets Cash$$22,000$ Accounts receivable $83,000$ Merchandise inventory $158,400$ Property, plant and equipment $($net of $$594,000$ accumulated depreciation$)1,004,000$ Total assets$$1,267,400$ Liabilities and Stockholders' Equity Accounts payable$$196,000$ Common stock $620,000$ Retained earnings $451,400$ Total liabilities and stockholders' equity$$1,267,400$

Required:

a$.$ Prepare a Schedule of Expected Cash Collections for April and May.

b$.$ Prepare a Merchandise Purchases Budget for April and May.

c$.$ Prepare Cash Budgets for April and May.

d$.$ Prepare Budgeted Income Statements for April and May.

e$.$ Prepare a Budgeted Balance Sheet for the end of May.