First Store prepares budgets quarterly.The following information is available for use in planning the second quarter budgets for 2021.

First Store prepares budgets quarterly. The following information is available for use in planning the second quarter budgets for 2021. First Store Balance Sheet March 31, 2021 Assets Cash $1,000 Accounts Receivable $25,000 Inventory $ 29, 400 Prepaid Insurance $1,800 Net Fixtures $25,000 Total Assets $82,000 Liabilities Accounts Payable $25, 480 Dividend Payable $5,000 Total Liabilities $30, 480 Stockholders' Equity Common Stock $15,720 Retained Earnings 536,000 $51,720 Total Liabilities and Stockholders' Equity 582,200 Actual and forecasted sales for selected months in 2021 are as follow: Month Sales Revenue venuer $60,000 February $50,000 March $40,000 April $50,000 May $60,000 June $70,000 July $90,000 Monthly operating expenses are as follows, but note you will need to compute the monthly insurance expense Wages and salaries $25,000 Depreciation $200 Utilities $1,000 Rent $2,000 Prepaid insurance was made for the upcoming 6 months Cash Dividends are declared during the third month of each quarter and are paid during the first month of the following quarter: $5,000 Operating expenses, except insurance and depreciation are paid monthly. Cost of goods sold is equal to 49%% of sales revenue in month of sale. Ending inventories are sufficient for 120%% of next month's cost of sale. Purchases during any given month for merchandise are paid full during the following month. All sales are on account 50% collected during month of sale 40%% collected during the next month after sale 10% collected the second month after sale The company requires a minimum cash balance of $1,000 at the beginning of each month If there is a cash deficiency the company will take out short-term financing so that the ending balance at the end of the month will meet the company requirement for a minimum cash balance. New Loans will be repaid if excess cash is over the required minimum cash balance in increments of $1,000 at an annual interest rate of 12%% or monthly of 1.00%% 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 Therefore, interest is incurred the month of the borrowing and thereafter until paid at the end of the month when there is sufficient funds to pay off more than $1,000.Please note that the quarter total column does not necessarily mean you total a row. When there are beginning and ending balances you need to showthe beginning or ending balance for the quarter. Round to the nearest dollar. 1. Prepare a purchase budget for each month of the second quarter ending June 30, 2021 along with a quarter column. Budget#1 First Store Purchase Budget For the quarter ending June 30, 2021 April May June Quarter Total Budgeted Sales (As provided on $50,000 part 1) Current cost of goods sold Desired ending inventory Total inventory needs Less beginning inventory Budgeted purchases 2. Prepare a cash receipts schedule for each month of the second quarter ending June 30, 2021 along with a quarter column. Do not include borrowings. Budget#2 First Store Schedule of Budgeted Cash Collections For the quarter ending June 30,2021 April May June Quarter Total 50% of current month's sales 40% of last month's sales 10% of sales two months prior Total cash receipts 3. Prepare a cash disbursements schedule for each month of the second quarter ending June 30, 2021 long with quarter column. Do not include repayments of borrowings. Budget#3 First Store Schedule of Cash Disbursements For the quarter ending June 30, 2021 April |May June Quarter Total Purchases of merchandise prior month Current cash operating expenses Cash dividends Total cash disbursements 4. Prepare a cash budget for each month of the second quarter ending June 30, 2021. Include budgeted borrowings and repayments if applicable. Budget#4 First Store Cash Budget For the quarter ending June 30,2021 April May June Quarter Total Cash balance, beginning Total cash receipts (see budget #2) Total cash disbursements (see budget #3) Excess(deficiency) cash available over disbursements Short-term financing: New loans Repayments Interest Cash balance, Ending 5. Prepare a budgeted income statement for each month of the second quarter ending June 30, 2021 along with a quarter column. Budget#5 First Store Budget Income Statement For the quarter ending June 30, 2021 April | May June Quarter Total Sales Cost of sales _Gross profit Expenses: Wages and salanes expense Depreciation expense Utilities expense Rent expense Insurance expense Interest expense Total Expenses Net Income 6. Prepare a budgeted balance sheet as of June 30, 2021. Budget#6 First Store Budgeted Balance Sheet June 30, 2021 Assets Liabilities Cash Accounts payable Accounts receivable Dividends payable Inventory Loan payable Prepaid insurance nterest payable Net fixtures Total Liabilities Stockholders' Equity Common stock Retained eamings Total Assets Total liabilities and Stockholders equity 7. What if the company is able to decrease the annual interest rate on loans to 10%. Which budgets will change and what will be the new budgeted interest expense for the quarter ending June 30, 2021? You should only have to change the annual interest rate on this worksheet and all the appropriate budgets will change on the solution worksheet if you have set up your cell references correctly. Please make sure you return the annual interest rate back to the original percentage before you submit your solution