Ellis Corporation prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparation of the master budget for the third quarter of 2019: a. As of June 30, 2019 (the end of the prior quarter), the company's general ledger showed the following account balances: b. Actual sales for June and budgeted sales for the next four months are as follows: c. Monthly expenses are budgeted as follows: utilities, $12,000 per month; salaries and wages, $17,000 per month; rent, $25,000 per month; advertising, 4 percent of sales; depreciation, $10,000 per month; miscellaneous, 2 percent of sales d. At the end of each month, inventory is to be on hand equal to 30 percent of the following month's sales needs, stated at cost. e. Thirty-five percent of a month's inventory purchases are paid for in the month of purchase; the rest is paid for in the following month. f. Sales are 40 percent for cash and the rest are on account. All sales on account are collected the month following sale. The accounts receivable on June 30 are a result of June credit sales. g. The company's gross profit rate is 36 percent of sales. h. During July, the company will purchase a new computer for $16,000 in cash. During September, other equipment will be purchased for cash at a cost of $15,000. Assume there will be no equipment purchases in August 2019. i. During August and September, the company will declare and pay $15,000 and $13,000 in cash dividends, respectively. Assume no dividends will be paid in July. j. The company must maintain a minimum cash balance of $12,000. An open line of credit is available at a local bank for any borrowing that may be needed during the quarter. All borrowing is done at the beginning of a month, and all repayments are made at the end. Borrowings and repayments of principal must be in multiples of $1,000. Interest is paid at the end of each month. The interest rate is 12 percent per annum. (Figure interest in whole months, e.g., 1/12, 2/12.) Required: Prepare an interactive budgeting spreadsheet. It should automatically update when changes are made to the input data, such as changes in sales forecasts, equipment purchases, etc. Spreadsheets Hints 1. Create a worksheet for inputs that includes all potential variables that can be changed. Label the worksheet tab as "inputs." 2. Create a worksheet for each of the different budgets. Label the tabs appropriately. The following budgets should be included: a. Sales Budget b. Inventory Purchases Budget c. Selling and Administrative Budget d. Cash Collections from Customers Schedule e. Cash Paid for Inventory Purchases Schedule f. Cash Budget g. Budgeted Income Statement h. Budgeted Balance Sheet