I need help with both parts a and b on what is required.

The University of Texas at Austin McCombs School of Business Foundations of Accounting (ACC 310F) Assignment 3 Once you have completed the assignment below, you must submit your answers using the answer sheet provided in Canvas (in the Assignments area); not all answers will be turned in. Once submitted, your answers cannot be changed. Where appropriate, partial credit will be given. The teaching assistants and I can help you on Part A of the assignment, but not on Part B. Unlike a quiz, you may work with other classmates if you wish, but you must submit your own work. You will not be able to view your submitted answers in Canvas so you should keep a copy of them for reference. Part A (20 points) Cover-UP! Incorporated buys solar shades and then resells them through the company's website; each unit is purchased for $18 and then sold for $40. The company had the following sales data available in units: July 6,000 (actual), August 6,000 (budget), September 9,000 (budget), October 4,000 (budget) and November 5,000 (budget). All sales are made on account and experience shows that 40% of sales are collected in the month of the sale and 60% in the month after the sale. All product purchases made by the company are paid in full in the month of purchase. The company maintains ending inventory equal to 25% of the next month's unit sales and the company had 1,200 units in inventory on August 1st. The company's advertising is considered a variable cost and is budgeted at $2 per unit based on the current month's sales. Administrative costs include rent for office space of $5,000 per month and salaries totaling $8,000 per month. The company plans on giving its employees a pay raise in September, which would increase salaries by $1,000. All selling and administrative costs are paid in full each month. The company's cash balance on August 1st is $40,000. Required: Given the information above, prepare a sales budget, purchases budget, cash budget, budgeted income statement and a budgeted balance sheet (cash, accounts receivable and inventory sections only) for August and September. -- Page 1 of 2 -- Part B (30 points) Sp-EYE, Inc. buys video surveillance equipment and then resells them for $1,200 per unit. The company had the following sales data available in units: January 800 (actual), February 700 (actual), March 600 (budget), April 900 (budget), May 1,000 (budget) and June 1,200 (budget); all sales are made on account and recent experience shows that 80% of sales are collected in the month of the sale and 20 in the month after the sale. The company purchases its product for $800 per unit and all purchases are paid in full in the month the purchase is made. The company maintains ending inventory equal to 10% of the next month's unit sales and the January and February actual inventory levels are consistent with this policy. The company's advertising is considered a variable cost and is budgeted at $20 per unit based on the current month's sales. Administrative costs include rent for office space at $8,000 per month and administrative salaries totaling $65,000 per month. All selling and administrative expenses are paid immediately. The company plans to purchase $150,000 of equipment in May and plans to take out a $100,000 loan in April to help fund the purchase. The company's cash balance on February 28 is $35,000. Required: Given the information above, prepare a sales budget, purchases budget, budgeted income statement, cash budget and a budgeted balance sheet (for cash, accounts receivable, inventory, equipment and liabilities) for March, April and May. -- Page 2 of 2