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Mecca 1 Company, a retailer of specialty wall-papers, prepares a mondhly master budget. Data for the September master budget are glven below: a. The t b. Actual sales for August and budgeted sales for September, October, and November are given below: c. Sales are 40% for cash and fios on credi. All credit sales are collected in the monch following the sale. There are no bad debts. d. The gross margin percentage is 55% of sales. The desired ending inventory is equat to 30 ha of the following month's COGS. One fourth of the purchases are paid for in the month of the purchise and the remaining 75% are purchased on account and paid in full the following month. e. The monthly operating expenses are $110,000 including the monthly depreciation of $12,000 f. In September, Mecca Compsoy will purchase new office equipment for $60,000 cash. The expected useful life of the new equlpment is 5 years, with no salvage value. It will be depreciated using the straight-line method. Mecca will start depreciating the equipment in September (full month). 8. Dividends of $22,500 and $28,000 will be declared and paid in September and October, respectively. 1. The company must maintain a minimum cash balance of $38,000. A line of credit is used to maintain this balance. Borrowing will be made in increments of $1,000. All bonturiog is done at the beginning of the month and ropayments are made at the end of the month. The anmual interest rate is 12%, paid when the loan is repaid ( ignore the accruat of interest). Required: 1. Prepare a balance sheet, income statement, and cash budget for the month of Septembec