Do 1a-1d on excel and use the templete shown below. show the work by using formulas.

Part 1a. This part requires you to create a sales budget by month and the total for the 2nd quarter. Use formulas wherever possible.

Part 1b. This part requires you to create a schedule for budgeted cash collections from sales and accounts receivable. Use formulas wherever possible and link information from Part 1a.

Part 1c. This part requires you to create a purchases budget in units and dollars. Note: this company is a merchandiser, so no production budget is needed. Instead, a purchases budget will be used (since the company will be buying inventory instead of manufacturing it). Obviously, you will not need any direct materials, direct labor etc. budgets. Use formulas wherever possible. Link information wherever possible.

Part 1d. This part requires you to create a cash disbursements budget for purchases by month and the total for the quarter. Use formulas wherever possible and link information.

save you loads of time. The project due date is noted on your class timeline. Note: You need to use formulas and cell references whenever possible. If you do not use formulas or cell references, I will deduct points. Part la. This part requires you to create a sales budget by month and the total for the 2d quarter. Use formulas wherever possible Part 1b. This part requires you to create a schedule for budgeted cash collections from sales and accounts receivable. Use formulas wherever possible and link information from Part la. Part 1c. This part requires you to create a purchases budget in units and dollars. Note: this company is a merchandiser, so no production budget is needed. Instead, a purchases budget will be used (since the company will be buying inventory instead of manufacturing it. Obviously you will not need any direct materials, direct labor etc budgets. Use formulas wherever possible. Link information wherever possible Part 1d. This part requires you to create a cash disbursements budget for purchases by month and the total for the quarter. Use formulas wherever possible and link information Part 2. This part requires you to create a cash budget by month and the total for the quarter. Use formulas wherever possible and link information. Also use formulas when you calculate numbers that aren't given, like interest expense Use formulas whenever you calculate numbers (i.e. interest expense). Part 3. This part requires you to create a budgeted income statement from the previous parts and additional information given in the case. Use formulas wherever possible, including any derived numbers (i.e. COGS, commissions). Use formulas whenever you calculate numbers Part 4. This part requires you to create a budgeted balance Master Budget with Supporting Schedules You have just been hired as a management trainee by Cravat Sales Company, a nationwide distributor of a designer's silk ties. The company has an exclusive franchise on the distribution of the ties, and sales have grown so rapidly over the last few years that it has become necessary to add new members to the management team. You have been given responsibility for all planning and budgeting. Your first assignment is to prepare a master budget for the next three months, starting April . You are anxious to make a favorable impression on the president and have assembled the information below. The company desires a minimum ending cash balance each month of $12,000. The ties are sold to retailers for S8.10 each. Recent and forecasted sales in units are as follows: January (actual) 2,0 June February (actual 24,000 July March (actual) April May 65,000 40,000 28,000 Auust 36,000 33,000 September 32,000 41,000 The large buildup in sales before and during June is due to Father's Day. Ending inventories are supposed to equal 75% of the next month's sales in units. The ties cost the company $4.83 each. Purchases are paid for as follows: 50% in the month of purchase and the remaining 50% in the following month. All sales are on credit, with no discount, and payable within 15 days. The company has found, however, that only 30% of a month's sales are collected by month-end. An additional 60% is collected in the following month, and the remaining 10% is collected in the second month following sale. Bad debts have been negligible. The company's monthly selling and administrative expenses are given below Sales commissions pertie Fixed Wages and salaries S 22,000 Utilities Insurance Depreciation 1,500 Miscellancous S 3,000 14,000 1.200 All selling and administrative expenses are paid during the month, in cash, with the exception of depreciation and insurance expired. Land will be purchased during May for $30,000 cash. The company declares dividends of $12,000 each quarter, payable in the first month of the following quarter. The company's balance sheet at March 31 is given below: 15 days. The company has found, however, that only 300% of a month's sales are collected by month-end. An additional 60% is collected in the following month, and the remaining 10% is collected in the second month following sale. Bad debts have been The company s monthly selling and administrative expenses are given below Variable: Sales commissions Fixed: S1 per tie Wages and salaries S 22,000 S 14,000 S 1,200 Depreciation S1,300 Miscellaneous 3,000 Utilities All selling and administrative expenses are paid during the month, in cash, with the exception of depreciation and insurance expired. Land will be purchased during May for S30,000 cash. The company declares dividends of $12,000 each quarter, payable in the first month of the following quarter. The company's balance sheet at March 31 is given below Assets Cash Accounts receivable (S19.440 14,000 February sales; $158,760 March sales) Inventory (24,750 units) Prepaid insurance Fixed assets, net of depreciation 178,200 120,037.50 14.400 172,700 Total assets s 499 337.50 Liabilities and Steckholders' Equity Accounts payable Dividends payable Capital stock Retained earnings S 76,993.75 12,000 300,000 110,343.75 Total liabilities and stockholders 499 337.50 equity The company has an agreement with a bank that allows it to borrow in increments of $1,000 at the beginning of each month, up to a total loan balance of $300,000. The interest rate on these loans is 1% per month, and for simplicity, we will assume that interest is not compounded. At the end of the quarter, the company would pay the bank all of the accumulated interest on the loan and as much of the loan as possible (in increments of $1,000), while still retaining at least $12.000 in cash. Budgets Ma June Quarter 1a. Sales budget: Budgeted sales in units Selling price per unit Total sales 33,000 267,300 1b. Schedule of expected cash collections: February sales March sales April sales May sales June sales Total cash collections 1c. Merchandise purchases budget: Budgeted sales in units Add budgeted ending inventory Total needs Less beginning inventory Required unit purchases Unit cost Required dollar purchases 1d. Budgeted cash disbursements for inventory purchases March purchases April purchases May purchases June purchases Total cash payments Minimum ending cash balance Recent and forecast sales (in units. Desired ending inventories (percentage Sales collected cument month Sales collected following month Sales collected 2nd month following 60% Variable monthly expenses: Sales commissions (per tie) monthly expenses: 14,000 1500 Land purchased in May Dividends declared each quarter Balance sheet at March 31 19,440 158,760 120,0375 Fxed assets, net of depreciation LiabiWbes and Stockholders' Equity Dividends payable 300,000 Total liablities and stockholders' equity with Bank: 300,000 100% minimum cash baiance