Developing a Master Budget for a Merchandising Organization Assume Nordstrom prepares budgets quarterly. The following information is available for use in planning the second quarter budgets for one of its stores in thousands NORDSTROM Balance Sheet March 31 Assets Liabilities and stockholders Equity Cash 12.525 Mecha di sepureness 2000 A wewe 2003 wy 710 Inary 3.403 Sockerky Insura 123 F 3,00 S11,115 Stany 51115 Actual and forecasted sales for selected months in the upcoming year are as follows: Manth in thousand Sales Revue January 2D February 2.700 Narh ASTI SED NE une 3.500 . AB Monthly operating expenses are as follows: Mundwa 3/50 Ccp coat 75 At THE Other and Cash dividends for the store at $710 thousand are declared during the third month of cach quarter and are paid during the first month of the following quarter. Operating expenses, cxcept insurance, rent and depreciation are paid as incurred. The prepaid insurance is for five more months. Cost of goods sold is equal to 60 of sales. Crcing inventories are sufficient for 150% of the next month's cost of sales. Purchases during any given month are paid in full during the following month Cash sales scount for Son of the revenue of the credit sales 60 secolected in the rest month and 40% are collected in the month after Morey can be repayment is at the end of the math. Mancy is never read on the end of the month it is by die nuwe of mononi olimer moltiples of $tee per yeara list principalis repudimeres is paid on the portion of principal that is repaid. All borrowing is at the beginning of the month, and Part A Parts Part Part Part Part () Propuneris schedule for each of the second quarter ercingur Danonering NORDSTRONS Schedule of Manthly Cash Recipes on thousands Quarter Ending june April Way Total Tech OS OS