I believe i did it wrong. Please fix it

You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located 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$20 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) February (actual) March (actual) April (budget) May (budget) 23,200 29,200 43,200 68,200 103,200 June (budget) July (budget) August (budget) September (budget) 53,200 33,200 31,200 28, 200 The concentration of sales before and during May is due to Mother's Day. Sufficient 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 $5.60 for a pair of earrings. One-half of a month's purchases is paid 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 sales 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 sale. Bad debts have been negligible. Monthly operating expenses for the company are given below: Monthly operating expenses for the company are given below: 4% of sales Variable: Sales commissions Fixed: Advertising Rent Salaries Utilities Insurance Depreciation $ 360,000 $ 34,000 $ 138,000 $ 15,000 $ 4,600 $ 30,000 Insurance is paid on an annual basis, in November of each year. The company plans to purchase $24,000 in new equipment during May and $56,000 in new equipment during June; both purchases will be for cash. The company declares dividends of $27,000 each quarter, payable in the first month of the following quarter. The company's balance sheet as of March 31 is given below: $ 90,000 Assets Cash Accounts receivable ($58,400 February sales; $691, 200 March sales) Inventory Prepaid insurance Property and equipment (net) Total assets Liabilities and Stockholders' Equity Accounts payable Dividends payable Common stock Retained earnings Total liabilities and stockholders' equity 749,600 152,768 29,000 1,110,000 $ 2,131,368 $ 116,000 27,000 1,120,000 868, 368 $ 2,131,368 The company maintains a minimum cash balance of $66,000. 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 $66,000 in cash. Required: Prepare a master budget for the three-month period ending June 30. Include the following detailed schedules: 1. a. A sales budget, by month and in total. b. A schedule of expected cash collections, by month and 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 $66,000. 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. Earrings Unlimited Cash Budget For the Three Months Ending June 30 April $ 74,000 $ 936,000 1,010,000 June Quarter $ 372,300 May 50,280 1,454,000 1,504,280 1,794,000 2,166,300 $ 74,000 4,184,000 4,258,000 Beginning cash balance Add collections from customers Total cash available Less cash disbursements: Merchandise purchases Advertising 1,168,800 1,080,000 102,000 Rent 346,160 360,000 34,000 138,000 54,560 15,000 Salaries 463,120 360,000 34,000 138,000 82,560 15,000 24,000 359,520 360,000 34,000 138,000 42,560 15,000 56,000 414,000 Commissions Utilities 179,680 45,000 80,000 0 0 0 27,000 27,000 974,720 35,280 1,116,680 387,600 1,005,080 1,161,220 3,096,480 1,161,520 Equipment purchases Dividends paid Total cash disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments Interest Total financing Ending cash balance 15,000 0 0 0 0 0 (15,000) (300) (15,300) false 15,000 (15,000) (750) (750) $ 1,160,770 (450) (450) $ 1,160,770 15,000 50,280 $