I am struggling with solving this problem. If possible please show how you came to the number that is calculated in the answer for future reference. Thank you!

A Company has determined they need to engage in a budgeting process as part of their new strategic plan. The Company has asked you to provide the following items for the months of January, February, and March of 2019: A) a Purchases Budget; B) a Cash Budget; C) a Budgeted Income Statement; and D) a Budgeted Balance Sheet. They have provided you with the planning document below and also, with their December 31, 2018 Balance Sheet.

Actual November 2013 Sales Actual December 2018 Salees 245,000 235,000 Expected Monthly Sales January 179.000 February S 184,000 163,000 March April 176,000 All Sales are on Credit Collections of Accounts Receivable: 45.00% Month of Sevice Month following Service 55.00% Cost f Goods Sold as a percentage of selling price. 62.00% Planned ending inventory as a percentage fnext month's required inventory. 63.00% Purchases are are all on credit Actual Purchases made in December 2013 122,090 Purchases paid arrent month 30.00% Purchases paid in next month Marketing expenses have a fixed and variable portion: Fixed portion $3450 The fixed portion of the marketing is paid in the current month Variable portion as a percentage of sales The variable portion is paid two months after the month inaurred. Total marketing for month 110% Sales commission as a percent of sales 200% Sales commission are paid one month after the month inarred. |Selling and Administrative expenses have a fixed and variable portion: $21.300 Fixed portion is paid in the month incurred 150% Variable portion as a percentage of sales Variable S&A expenses are paid one month after the month incurred Insurance policy: Months of insurance coverage paid for 12 The policy period is from February 1 to January 31 each year The premium to be paid on February 2019 is $14,640 The premium will be charged to prepaid insurance $5,0s0 Depreciation expense per month The annual interest rate on the long term debt is 4.65% Interest is incurred on the principal balance outstanding each month Interest is paid on a quarterly basis. Interest for December to February will be paid March 1. No principal payments are scheduled to be made on the long-term debt until September of 2019 The Company's Board of Directors plans to declare a dividend on March 20. $10,000 It will be paid on April 15 Income Tax rate 21.00% Acrued taxes for the three previous months are paid on the 15th of January, April, July and October. ASSETS Current Assets Cash 303,200 Accounts Receivable 129,250 66 Inventory Prepaid Insurance 1,220 Total Current Assets 509,136 Property Plant and Equipment office Equipment 304,800 (60,960) Accumulated Depreciation Total Property Piont and Equipment 243,840 Total Assets 752,976 IABILIMIES AND SHAREHOLDERS EQUITY ILTES Current Liabilities Accounts Payable Purchases $ 36,627 Sales Commission Payable 4,700 Selling and Admin Payable 3,525 Interest Payalble 465 Marketing Payable Income Taxes Payable 5,280 15,320 Dividends Payable Total Current Liabties 65,917 Long Term Debt 120,000 Total tigbitties 185,917 SHAREHOLDERS EQUTY Common Stock 104,000 Retained Earn ings 463,059 Total Shareholders' Equity 567,059 Total tiobdities and Shareholders Equity $ 752,976 Check figures are: January Budgeted Purchase for Next Month Sales = $113,088; March Inventory Needed to be Available during Current Month $175,262. Solution Adtual Budgeted Budgeted Budgeted February March Dec 2018 January Desired Endin Inventory Balance for Current Month $ T5A466 Current Month's Cost of Sales 145,700 Innventory Needed to be Available during Current Month Less: Beginning Inventory of Current Month 1,166 99,076 Budgeted Purthase for Next Month Sales $122,090 Check figures are: January Cash Receipts $209,80o; February Cash Disbursements = $155,825; March Ending Cash Balance $405,496 Solution: Jan 31, 2019 Feb 28, 2019 Mar 31, 2019 Beginning of Month Cash Balance CASH N 45% This Month's Sales 55% of Last Month's Sales Total Cash Recepts for Month Total Cash Available During Month CASH OUT 30% Last Month's Purchases This Monthis Purchases Marketing Commissions Selling & Administrative Insurance Interest Income Tax Dividends Total Cash Disbursements for Month End of Month Cash Balance Check figures are: January Budgeted Gross Margin = $68,020; February Budgeted Operating Income $30,406; March Budgeted Net Income $18,112. Solution: Feb 28,2019 Mar 31, 2019 Jan 31, 2019 Sales Cost of Sales Gross Margin Other Operating Expenses Commission Expense Marketing Expense Insurance Expense |Selling & Administrative Expense Depreciation Expense Totol Other Operating Expenses perating tncome Other Income (Expense) Interest Expense tncone Before tncone Tax Income Tax Expense Net Income Check figures are: January Total Assets $761,006; February Total Liabilities $175,620; March Total Current Assets $581,548. Solution: ASSETS Jan 31, 219 Feb 28,219 Dec31, 2018 Mar 31, 219 Current Assets Cash Accounts Receivable Inventory Prepaid Insurance Total Current Assets Property Plant and Equipment office Equipment Accumulated Depreciation Total Property Plnt and Equipment Totol Assets LARITES AND SHARHKOLDERS EQUTY LABILMES Current Liabilities Accounts Payable - Purchases Sales Commission Payable Marketing Payable Selling and Administrative Payable Interest Payable Dividends Payable Income Taxes Payable Total Current tinbaities Long Term Debt Total Liobiities SHARHHKDERS EQUITY Common Stock Retained Earmings Total Shareholders' Equity Total tiabiities and Shareholders Equity