Dils Brother Department Store prepares budgets quarterly. The following information is available for use in planning the second quarter budgets for 2017. Dils Brother Department Store Balance Sheet March 31, 2017 Assets Liabilities and Stockholders' Equity ' Cash $ 4,000 Accounts payable $31,000 Accounts receivable 31,000 Dividends payable 15,000 Inventory 36,000 Rent payable 3,000 Prepaid Insurance 3,000 Stockholders' equity 50,000 Fixtures 25,000 Total assets $99,000 Total liabilities and equity $99,000 Actual and forecasted sales for selected months in 2017 are as follows: Month Sales Revenue January $ 70,000 February 60,000 March 50,000 April 60,000 May 70,000 June 80,000 July 100,000 August 90,000 Monthly operating expenses are as follows: Wages and salaries $ 27,000 Depreciation 100 Utilities 1,500 Rent 3,000 Cash dividends of $15,000 are declared during the third month of each quarter and are paid during the first month of the following quarter. Operating expenses, except 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 inventories 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 month. All sales are on account, with 50 percent collected during the month of sale, 40 percent during the next month, and 10 percent during the month thereafter. Money 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 $4,000 on the first of each month. At the time the principal is repaid, interest is paid on the portion of principal that is repaid. All borrowing is at the beginning of the month, and all repayment is at the end of the month. Money is never repaid at the end of the month it is borrowed. (a) Prepare a purchases budget for each month of the second quarter ending June 30, 2017. Dils Brothers Department Store Monthly Purchase Budget Quarter Ending June 30, 2017 April May June Total Budgeted purchases $ 0$ 0 $ 0 $ 0 (b) Prepare a cash receipts schedule for each month of the second quarter ending June 30, 2017. Do not include borrowings. Dils Brothers Department Store Schedule of Monthly Cash Receipts Quarter Ending June 30, 2017 April May June Total Total cash receipts $ 0 $ OS 0 $ 0 OS 0 (c) Prepare a cash disbursements schedule for each month of the second quarter ending June 30, 2017. Do not include repayments of borrowings. Dils Brothers Department Store Schedule of Monthly Cash Disbursements Quarter Ending June 30, 2017 April May June Total Total cash disbursements $ 0 $ 0$ 0$ 0 $ 05 0 0 Total (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 ending) Dils Brothers Department Store Monthly Cash Budget Quarter Ending June 30, 2017 April May June Cash balance, beginning Receipts Disbursements Excess receipts over disb. Balance before borrowings Borrowings Loan repayments Cash balance, ending $ 0 $ 0 $ 0 $ 0 0 0 0 O O 0 0 0 0 0 0 0 OOOOOO 0 Ooo OOO 0 0 0 0 0 0 0 0 0 $ 0 $ 0 $ 0 $ 0 Oo 0 0 0 (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. Dils BrothersDepartment Store Budgeted Monthly Income Statements Quarter Ending June 30, 2017 April May June Total Sales 0 $ 0 $ 0 $ Cost of sales 0 0 Gross profit 0 Operating expenses: Wages and salaries 0 Depreciation 0 Utilities 0 0 Rent Insurance Interest 0 0 Total expenses 0 Net income $ 0 $ $ 0 0 0 0 O O 0 0 0 0 0 0 0 0 0 0 O O O 0 0 0 Oo 0 $ 0 (1) Prepare a budgeted balance sheet as of June 30, 2017. Dils BrothersDepartment Store Budgeted Balance Sheet June 30, 2017 Assets Liabilities and Equity Cash $ O Merchandise payable $ Accounts receivable Dividend payable Inventory 0 Rent payable Prepaid insurance 0 Loans payable Fixtures Interest payable Total assets $ 0 Stockholders' equity Total liab. & equity $ 0 0 O O O Olo 0 0 0 0