Fill out thr Statement of Cash flow with the given Information below

2) Skip this requirement until we cover Packet 4.2 and you work HW 42. Before making any changes to the budget assumptions or expected transaction for April 1, management would like you to prepare & budgeted statement of cash flows for the quarter period ending June 30 to accompany the original budget work you did on connect Use the riven balance sheet for March 31 and your prepared balance sheet(Req. 4) and income statement(Req3 from connect. Make sure you include the following (a) appropriate header/title (b) include the dollar amounts as positive or negative to indicate if cash is increased or decreased by the item listed in the report and (c) include the correct term "provided by or used in" for each subtotal. There may be rows that you leave blank. Project Page 3 of 14 NOTE: DO NOT USE ANY OF THE INFORMATION YOU CALCULATED IN I ABOVE YET. This statement of cash flows should represent ONLY the activity between the balance sheets on your connect question March 31 (given in connect) and June 30 (requirement of cont DO NOT include any transactions relating to the acquisition of the new production facility. Amounts should be in whole dollar Earrings Unlimited Statement of Cash Flows-Direct For this Quarter Ending June 30 Cash flows from operating activities Net Income $300.566 Depreciation $45,000 Adjustments to reconcile net income to net cash provided by operating activities Net Cash operating activities Cash flows from Investing Activities Net Cash investing activities Cash flows from Financing Activities Net Cash Financing Activities Not Increase in Cash Beginning cash balance April 1, 20xx Ending Cash balance, June 30, 20xx FROM THIS POINT FORWARD IN THE PROJECT, YOU WILL USE THE INFORMATION CALCULATED IN I ABOVE. THESE ARE "REVISED BUDGET SCHEDULES. located 3 nts awarded Scored Book Part References in shopping malls across the country. In the past, the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. Since you are well trained in budgeting, you have decided to prepare a master budget for the upcoming second quarter. To this end, you have worked with accounting and other areas to gather the information assembled below. The company sells many styles of earrings, but all are sold for the same price-511 per pair. Actual sales of earrings for the last three months and budgeted sales for the next six months follow (in pairs of earrings): January (actual) 20,200 June (budget) 50,200 February (actual) 26,200 July (budget) 30,200 March (actual 40,200 August (budget) 28,200 April (budget) 65,200 September (budget) 25,200 May (budget) 100,200 The concentration of sales before and during May is due to Mother's Day, Suficient inventory should be on hand at the end of each month to supply 40% of the earrings sold in the following month Suppliers are paid $410 for a pair of earrings One-half of a month's purchases is pold for in the month of purchase the other half is paid for in the following month. All sales are on credit. Only 20% of a month's soles are collected in the month of sale. An additional 70% is collected in the following month, and the remaining 10% is collected in the second month following sole. Bad debts have been negligible Monthly operating expenses for the company are given below Variables Sales commissions 44 of sales Fixed: Advertising $ 210.000 Rent 519,000 Salaries $288.000 Utilities $7,500 Insurance $ 3,100 Depreciation $ 15,000 Insurance is paid on an annual basis, in November of each year. The company plans to purchase $16,500 in new equipment during May and $41,000 in new equipment during June, both purchases will be for cash. The company declares dividends of $15.750 each quarter, payable in the first month of the following quarter. Cash awarded bored BOOK Print 0 The company's balance sheet as of March 31 is given below. Assets $ 75,000 Accounts receivable ($28,820 February sales: $353,760 March sales) 382,580 Inventory 106,928 Prepaid insurance 21,500 Property and equipment (net) 960,000 Total assets $ 1,546,008 Liabilities and Stockholders' Equity Accounts payable $ 101,000 Dividends payable 15,750 Connon stock 820,000 Retained earnings 689,258 Total abilities and stockholders' equity $ 1,546,008 The company maintains a minimum cosh balance of $51000. All borrowing is done at the beginning of a month, any repayments are made at the end of a month The company has an agreement with a bank that allows the company to borrow in increments of $1.000 at the beginning of each month. 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 $51,000 in cash Required: Prepare a master budget for the three-month period ending June 30. Include the following detailed schedules: 1.1. A sales budget, by month and in total, b. A schedule of expected cash collections, by month and in total, c. A merchandise purchases budget in units and in dollars. Show the budget by month and in total d. A schedule of expected cash disbursements for merchandise purchases, by month and in total 2. A cash budget. Show the budget by month and in total Determine any borrowing that would be needed to maintain the minimum cash balance of $51,000 3. A budgeted income statement for the three month period ending June 30. Use the contribution approach 4. A budgeted balance sheet as of June 30. Herences Earrings Unlimited Budgeted Balance Sheet June 30 Assets Cash $ 230,126 551,980 Accounts receivable Inventory Prepaid insurance Property and equipment, net 49,528 12,200 972,500 1,816,334 Total assets $ Liabilities and Stockholders' Equity Accounts payable $ Dividends payable Common stock Retained earnings 86,510 15,750 820,000 894,074 Total liabilities and stockholders' equity $ 1,816,334