Data Scenario: You have just been hired into a management position which requires the application of your budgeting skills. You find out that budgeting has not been a priority of the company and that they have been experiencing cash shortages. You have contacted various areas on the organization and have accumulated the information below to assist you in preparing a comprehensive budget. The following is actual information that relates to the operations of a merchandiser named Sled Company, a wholesaler of sleds as of March 31. Cash $500 Accounts receivable 25,600 Inventory 4,980 Accounts Payable $16,932 The accounts payable at March 31 is a result of March purchases of inventory. I have set up the calculation in the row above to show you the Accounts Payable as of March 31st calculation. Actual and Budgeted sales dollar Data-Sales Budget: March (actual) $40,000 April $20,000 May $18,000 June $16,000 July $15,000 Sales are the following type: 36% Cash sales collected in month of sale 64% Credit sales collected in the following month of sale Credit sales are collected in the month following sale. The accounts receivable at March 31 are a result of March credit sales. Cost of goods sold equals 83% of sales price At the end of each month, inventory is to be on hand(ending inventory) equal to 30% of following month's sales needs, stated at cost. Inventory purchases are paid 40% in month of purchase 60% in month after purchase Monthly selling expenses are as follows and are paid in the month incurred if it is a cash expense. Salaries and wages 3% of sales dollar Commissions 2% of sales dollar Advertising $800 per month Utilities $400 per month Monthly general and administrative expenses are as follows and are paid in the month incurred if it is a cash expense. Rent $3,200 per month Depreciation $500 for month Required: You must use cell references on the BudgetSolution worksheet, by referencing this worksheet that contains the data. Prepare the following second quarter budgets and answer the questions listed on the template provided on the BudgetSolution Worksheet. I have adapted the budget model to meet the needs of this company. If I bolded a line item, that is a header and does not need computation on that row. Please note the quarter column is for the quarter so not all lines should be added across in the quarter column. When you have beginning and ending inventory or cash balances this is for the quarter and should be brought over to the quarter column. 1. Prepare Sales Budget in dollars by month and quarter. 2. Prepare a merchandise purchase budget by month and quarter in dollars. 3. Prepare a Selling Expense Budget, by month and quarter. 4. Prepare a General and Administrative budget, by month and quarter. 5. Prepare a cash budget showing the months and quarter. 6. Prepare a budgeted income statement for the quarter ending June 30, 20XX. You do not need to show monthly columns. I entered Sales for you on the income statement 7. Provide a detailed response discussing the survivability of this business. Include a recommendation on changes this company could implement to increase the probability of survivability. Include a related source other than the textbook and the reference you used in #6 above in your response. Provide an APA citation of that source at the end of your response. 8. What if the company finds out the monthly rent will increase to $3,500, what budgets are effected? Why? What is the New Net income(Loss) for the quarter? If you have linked everything correctly, you should only have to change the monthly rent on this sheet to determine your answer to the questions asked. Please change the rent back to the original amount before you submit