Is the preliminary cash balance correct? If not, can you please recalculate it with the correct answer. Thank you

To prepare a master budget for January. February, and March of 2018, management o ng a. The company's single product is purchased for $30 per unit and resold for $55 per unit. The expected inventory level of 5,000 units on December 31, 2017, is more than management's desired level, which is 20% of the next month Expected sales are: January, 7000 units: February, 9,000 units: March,11,000 units: and April, 10.000 u b. Cash sales and credit sales represent 25% and 75%, respectively, of total sales. Of the credit sales, 60% 's expected sales (in units). month after the month of sale and 40% in the second month after the month of sale. For the December 31, 2017, accounts recelvable balance, $125,000 is collected in January and the remaining $400.000 is collected in February. collected in the f Merchandise purchases are paid for as follows: 20% in the first month after the month of purchase and 80% in the second after the month of purchase. For the December 31, 2017 accounts payable balance. $80,000 is paid in January and $280,000 is paid in February month d. Sales commissions equal to 20% of sales are paid each month. Sales salaries (excluding commissions) are $60,000 per e. General and administrative salaries are $144,000 per year Maintenance expense equals $2,000 per month and is paid f. Equipment reported in the December 31, 2017, balance sheet was purchased in January 2017, It is being depreciated over eight years under the straight-line method with no salvage value. The following amounts coming quarter: January, $36,000; February, $96,000: and March. $28,800. This equipment will be depreciated under the straight- line method over eight years with no salvage value. A full month's depreciation is taken for the month in which equipment purchased for new equipment purchases are planned in the g. The company plans to buy land at the end of March at a cost of $150,000, which will be paid with cash on the last day of the h. The company has a working arrangement with its bank to obtain additional loans as needed. The interest rate is 12% per year, and interest is paid at each month-end based on the beginning balance. Partial or full payments on these loans can be ma day of the month. The company has agreed to maintain a minimum ending cash balance of $25,000 at the end of the last each 1. The income tax rate for the company is 40%. Income taxes on the first quarter's income will not be paid until April 15 Required: Prepare a master budget for each of the first three months of 2018. Include the following component budgets 1. Monthly sales budgets. 2. Monthly merchandise purchases budgets 3. Monthly selling expense budgets. 4. Monthly general and administrative expense budgets. 5. Monthly capital expenditures budgets. 6. Monthly cash budgets. 7. Budgeted income statement for the entire first quarter (not for each month). To prepare a master budget for January. February, and March of 2018, management o ng a. The company's single product is purchased for $30 per unit and resold for $55 per unit. The expected inventory level of 5,000 units on December 31, 2017, is more than management's desired level, which is 20% of the next month Expected sales are: January, 7000 units: February, 9,000 units: March,11,000 units: and April, 10.000 u b. Cash sales and credit sales represent 25% and 75%, respectively, of total sales. Of the credit sales, 60% 's expected sales (in units). month after the month of sale and 40% in the second month after the month of sale. For the December 31, 2017, accounts recelvable balance, $125,000 is collected in January and the remaining $400.000 is collected in February. collected in the f Merchandise purchases are paid for as follows: 20% in the first month after the month of purchase and 80% in the second after the month of purchase. For the December 31, 2017 accounts payable balance. $80,000 is paid in January and $280,000 is paid in February month d. Sales commissions equal to 20% of sales are paid each month. Sales salaries (excluding commissions) are $60,000 per e. General and administrative salaries are $144,000 per year Maintenance expense equals $2,000 per month and is paid f. Equipment reported in the December 31, 2017, balance sheet was purchased in January 2017, It is being depreciated over eight years under the straight-line method with no salvage value. The following amounts coming quarter: January, $36,000; February, $96,000: and March. $28,800. This equipment will be depreciated under the straight- line method over eight years with no salvage value. A full month's depreciation is taken for the month in which equipment purchased for new equipment purchases are planned in the g. The company plans to buy land at the end of March at a cost of $150,000, which will be paid with cash on the last day of the h. The company has a working arrangement with its bank to obtain additional loans as needed. The interest rate is 12% per year, and interest is paid at each month-end based on the beginning balance. Partial or full payments on these loans can be ma day of the month. The company has agreed to maintain a minimum ending cash balance of $25,000 at the end of the last each 1. The income tax rate for the company is 40%. Income taxes on the first quarter's income will not be paid until April 15 Required: Prepare a master budget for each of the first three months of 2018. Include the following component budgets 1. Monthly sales budgets. 2. Monthly merchandise purchases budgets 3. Monthly selling expense budgets. 4. Monthly general and administrative expense budgets. 5. Monthly capital expenditures budgets. 6. Monthly cash budgets. 7. Budgeted income statement for the entire first quarter (not for each month)