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Developing a Master Budget for a Merchandising Organization Dils Arother Department Store prepares budgets quarterly. The following information is available for use in planning the

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Developing a Master Budget for a Merchandising Organization Dils Arother Department Store prepares budgets quarterly. The following information is available for use in planning the second quarter budgets for 2017. Actual and forecasted sales for selected months in 2017 are as folown: Cash dividends of $15,000 are declared during the third month of each quarter and are paid during the first month af the following quarter, Operating expenses, extept insurance, rent, and depreciation are paid as incurred. Rent is paid during the following month. The prepaid insurance is for five more months. Cost of goods sold is equal to 50 percent of sales. Ending imventories are sufficient for 120 percent of the next month's cost of sales. Purchases during any given month are paid in full during the following morith All sales are on accourit, with 50 percent collected during the month of sale, 40 percent during the next month, and 10 percent during the month therealter. Moniy can be borrowed and repaid in multiples of $1,000 at an interest rate of 12 percent per year. The company desires a minimum cash balance of 54,000 on the first of each morth. At the time the principal is repaid, Interest is paid on the portion of principal that is repaid. All borrowing ls at the beginning of the month, and all repygment is at the end of the manth. Money is never repald at the end of the month it is borrowed. (d) Prepare a cash budget for each month of the second quarter ending June 30, 2017. Include budgeted borrowings and repayments. Only use negative signs, if needed, for: excess receipts over disbursements, balance before berrowings and cash balances (beginning and ending). (d) Prepare a cash budget for each month of the second quarter ending June 30,2017 . Include budgeted borrowings and repayments. Only use negative signs, if needed, for: excess receipts over disbursements, balance before borrowings and cash balances (beginning and endinek. (e) Prepare an income statement for each month of the second quarter ending June 30,2017. Only use negative signs to show net losses for income. (f) Prepare a budgeted balance sheet as of June 30, 2017

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