I finished most of the problem I just need help with requirement 4, A budgeted balance sheet as of June 30.

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-$16 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) 22,000 28,000 42,000 67,000 102,000 June (budget) July (budget) August (budget) September budget) 52,000 32,000 30,000 27,000 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 $5.00 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: 4% of sales Variable: Sales commissions Fixed: Advertising Rent Salaries Utilities Insurance Depreciation $ 300,000 $ 28,000 $ 126,000 $ 12,000 $4,000 $ 24,000 Insurance is paid on an annual basis, in November of each year. The company plans to purchase $21,000 in new equipment during May and $50,000 in new equipment during June; both purchases will be for cash. The company declares dividends of $22,500 each quarter, payable in the first month of the following quarter. The company's balance sheet as of March 31 is given below: : $ 84,000 Assets Cash Accounts receivable ($44,800 February sales; $537,600 March wales) 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 582,400 134,000 26,000 1,050,000 $ 1,876,400 $ 110,000 22,500 1,000,000 743,900 $ 1,876,400 $ 84,000 Assets Cash Accounts receivable ($44,800 February sales; $537,600 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 582,400 134,000 26,000 1,050,000 $ 1,876,400 $ 110,000 22,500 1,000,000 743,900 $ 1,876,400 The company maintains a minimum cash balance of $60,000. All borrowing is done at the beginning of a month; any repayments are made at the end of a month. a 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 $60,000 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 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 $60,000. 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. Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 1C Req 1D Reg 2 Req3 Req 4 Prepare a master budget for the three-month period ending June 30 that includes a budgeted balance sheet as of June 30. Earrings Unlimited Budgeted Balance Sheet June 30 Assets Cash Accounts receivable Inventory X Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 1C Req 1D Req 2 Req 3 Req 4 Prepare a master budget for the three-month period ending June 30 that includes a sales budget, by month and in total. Sales Budget June Quarter April 67,000 May 102,000 52,000 221,000 Budgeted unit sales Selling price per unit Total sales $ 16 $ 16 $ 16 $ 16 $ 1,072,000 $ 1,632,000 $ 832,000 $ 3,536,000 X Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Req 1C Req 1D Req 2 Req 3 Req 4 Prepare a master budget for the three-month period ending June 30 that includes a schedule of expected cash collections, by month and in total. Quarter February sales March sales April sales May sales June sales Earrings Unlimited Schedule of Expected Cash Collections April May June $ 44,800 470,400 67,200 214,400 750,400 107,200 326,400 1,142,400 166,400 $ 729,600 $ 1,144,000 $ 1,416,000 $ 44,800 537,600 1,072,000 1,468,800 166,400 $ 3,289,600 Total cash collections X Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Req 1C Req 1D Req 2 Req 3 Req 4 Prepare a master budget for the three-month period ending June 30 that includes a merchandise purchases budget in units and in dollars. Show the budget by month and in total. (Round unit cost to 2 decimal places.) June Quarter 221,000 Earrings Unlimited Merchandise Purchases Budget April May Budgeted unit sales 67,000 102,000 Add: Desired ending merchandise inventory 40,800 20,800 Total needs 107,800 122,800 Less: Beginning merchandise inventory 26,800 40,800 Required purchases 81,000 82,000 Unit cost $ 5.00 $ 5.00 52,000 12,800 221,000 64,800 20,800 44,000 221,000 $ 5.00 $ 5.00 $ 1,105,000 Required dollar purchases $ 405,000 $ 410,000 $ 220,000 X Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Req 1C Reg 1D Req 2 Req 3 Req 4 Prepare a master budget for the three-month period ending June 30 that includes a schedule of expected cash disbursements for merchandise purchases, by month and in total. Earrings Unlimited Budgeted Cash Disbursements for Merchandise Purchases April May June Quarter $ Accounts payable $ 110,000 110,000 April purchases 202,500 202,500 405,000 May purchases 205,000 205,000 410,000 June purchases 110,000 110,000 $ $ Total cash payments $ 312,500 407,500 315,000 1,035,000 Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Req 1C Req 1D Reg 2 Req3 Reg 4 Prepare a master budget for the three-month period ending June 30 that includes 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 $60,000. (Cash deficiency, repayments and interest should be indicated by a minus sign.) Quarter 0 1,035,000 900,000 84,000 Earrings Unlimited Cash Budget For the Three Months Ending June 30 April May June Beginning cash balance $ 84,000$ $ 60,720 $ 244,940 Add collections from customers 729,600 1,144,000 1,416,000 Total cash available 813,600 1,204,720 1,660,940 Less cash disbursements: Merchandise purchases 312,500 407,500 315,000 Advertising 300,000 300,000 300,000 Rent 28,000 28,000 28,000 Salaries 126,000 126,000 126,000 Commissions 42,880 65,280 33,280 Utilities 12,000 12,000 12,000 Equipment purchases 0 21,000 50,000 Dividends paid 22,500 0 0 0 Total cash disbursements 843,880 959,780 864,280 Excess (deficiency) of cash available over disbursements (30,280) 244,940 796,660 Financing: Borrowings 91,000 0 0 0 Repayments 0 0 0 (91,000) Interest 0 0 0 0 (2.730) Total financing 91,000 0 (93,730) Ending cash balance $ 60,720 $ 244,940 $ 702,930 378,000 141,440 36,000 71,000 22,500 2,667,940 (2,667,940) 0 91,000 (91,000) (2.730) (2,730) $ (2,670,670) Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Reg 10 Req 10 Req 2 Req3 Reg 4 Prepare a master budget for the three-month period ending June 30 that includes a budgeted income statement for the three- month period ending June 30. Use the contribution approach. Earrings Unlimited Budgeted Income Statement For the Three Months Ended June 30 Sales $3,536,000 Variable expenses: Cost of goods sold Commissions 1,105,000 141,440 1,246,440 2,289,560 o Contribution margin Fixed expenses: Advertising Rent Salaries lolololo 900,000 84,000 378,000 36,000 12,000 72,000 OOOOOO Utilities Insurance Depreciation Net operating income Interest expense Net income 1,482,000 807,560 (2,730) 804,830 Prepare a master budget for the three-month period ending June 30 that includes a budgeted balance sheet as of June 30. Earrings Unlimited Budgeted Balance Sheet June 30 Assets Cash Accounts receivable Inventory Prepaid insurance Property and equipment, net 0 Total assets $ Liabilities and Stockholders' Equity Accounts payable Dividends payable Common stock Retained earnings Total liabilities and stockholders' equity $ 0