Insurnce is poid on an annual basis, in November of each year. The company pians to purchase $26,000 in new equipment during May and $60,000 in new equipment during June; both purchases will ber for cash. The conswany declores dividends of $30,000 each quartex, payable in the first month of the following quarter The companys balance sheet as of March 34 is given below Tho company maintains a minimum cash balance of $70000 All bonrowing is done ot the beginning of a month, any repayments are made of the end of a incoth The company has an apreement with a bank that aftows the compary is botrow in inciements of $1,000 at the beginning of eech month. The interest rate on these loans is 18 per month and for simplicity we will assune that interest is not compounded. Al the end of the quanter, the compary would pay the bank all of the eccumulated interest on the loan and as much of the loan as possible fin increments of $1,000. while still retoining ot least $70,000 in cash Required: 1. A sales budqet, by month and in total. You have just been hired as a new management trainee by Earings Unlimited, a distrioutor of earrings to various retail outlets located in shopping malls across the country in the pust, 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 marry styles of earings, but all are sold for the same price- $19 per pair. Actual sales of earrings for the last three months and budgeted sales for the next six months follow in poirs of earnings) The concentration of sales before and during May is due to Mothar's Doy. Sulficaent inventory should be on hand at the end of each month to supply 40% of the earrings sold in the following month Suppliers ore paid $6.00 for o pair of eartings. One-thaif of a monttis purchoses is paid for in the month of purchase, the other half is pald for in the following month. All sales ore 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. Manthly operating expenses for the company are given below. Instarance is paid on an onnual basis, in November of each vear; 3. A budgeted income statement for the three -month period ending June 30 Use the contribution approach 4. A budgeted balence sheet as of June 30 Answer is not complete. Complete this question by entering your answers in the tabs below. 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. (Found unit cost to 2 decimal places.) requirea: 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 $70,000 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 8 Answer is not complete. Complete this question by entering your answers in the tabs below. Prepare a master budget for the three-month period ending June 30 that includes a sales budget, by month and in total. aeficiency, repayments and interest shouid be indicated by a minus sign.) Q Answer is not complete. Complete this question by entering your answers in the tabs below. Prepare a master budget for the three: month period ending June 30 that includes a budgeted income statement for the threemonth period ending June 30 . Use the contribution approach. 1 a. A sales budiget, by month and in total. b. A schedule of expected cash collections, by month and in total. c. A merchandtee purchases budget in units and if dollars. Show the budgot by month and in tosal. d. A schedule of expected cash disbursements for morchandise purchases, by month and in total. 2. A cash budget. Show the budget by month and in total. Defermine any borrowing that would be needcd io maintain the minimum casin balance of $70.000 3. A budgeted incorne statement for the three-month period endirig June 30 Use the contribution approach. 4. A budgeted bolance sheet as of June 30 . Q Answer is not complete. Complete this question by entering your answers in the tabs below. 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. Complete this question by entering your answers in the tabs below. Prepare a master budget for the three-month period ending June 30 that includes a budgeted balance sheet as of June 30 . requirea: Prepare a master budget for the three-month period ending June 30 . Include the following detalled 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 $70,000 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 (8) Answer is not complete. Complete this question by entering your answers in the tabs below. Prepare a master budget ror the three-month period ending 3une 30 that indudes a schedule of expected cash collections, by month and in total