It is part a and part b. Please answer both parts! With solutions as well, please.

Thank you.

Knockoffs Unlimited, a nationwide distributor of low-cost imitation designer necklaces, has an All selling and administrative expenses are paid during the month, in cash, with the exception of exclusive franchise on the distribution of the necklaces, and sales have grown so rapidly over depreciation and insurance. Insurance is paid on an annual basis, in November of each year. the past few years that it has become necessary to add new members to the management The company plans to purchase $23,200 in new equipment during May and $58,000 in new team. To date, the company's budgeting practices have been inferior, and, at times, the equipment during June; both purchases will be paid in cash. The company declares dividends of company has experienced a cash shortage. You have been given responsibility for all planning $18,600 each quarter, payable in the first month of the following quarter. The company's and budgeting. Your first assignment is to prepare a master budget for the next three months, balance sheet at March 31 is given below: starting April 1. You are anxious to make a favourable impression on the president and have assembled the information below. The necklaces are sold to retailers for $10 each. Recent and forecasted sales in units are as follows: The large buildup in sales before and during May is due to Mother's Day. Ending inventories should be equal to 40% of the next month's sales in units. The necklaces cost the company $4 each. Purchases are paid for as follows: 50% in the month of purchase and the remaining 50% in the following month. All sales are on credit, with no discount, and payable within 15 days. The company has found, however, that only 20% of a month's sales are collected by month-end. An additional 70% is collected in the following month, and the remaining 10% is collected in the second month following sale. Bad debts The company wants a minimum ending cash balance each month of $50,000. All borrowing is have been negligible. done at the beginning of the month, with any repayments made at the end of the month. The interest rate on these loans is 1% per month and must be paid at the end of each month based The company's monthly selling and administrative expenses are given below: on the outstanding loan balance for that month. Variable: \begin{tabular}{|l|l|} \hline Sales commissions & 4% of sales \\ \hline Fixedi \end{tabular} Fixed: \begin{tabular}{|l|rr|} \hline Advertising & $254,000 \\ \hline Rent & $27,000 \\ \hline Wages and salaries & $127,600 \\ \hline Utilities & $ & 14,200 \\ \hline Insurance & $ & 6,600 \\ \hline Depreciation & $ & 32,000 \\ \hline \end{tabular} A budgeted income stateent for the three-month period ending June 30 . Use the varialbe costing approch. OCKOFFS UNLIMITED Budgeted Income Statement For the Three Months Ended June 30 Sales revenue Variable expenses: Cost of goods sold Commissions Contribution margin Fixed expenses: Advertising Rent Wages and salaries Utilities Insurance Depreciation Operating income Less interest expense Income before tax A budgeted balance sheet as of June 30: KOFFS UNLIMITED Budgeted Balance Sheet 30-Jun Assets Cash Accounts receivable Inventory Prepaid insurance Fixed assets, net of depreciation Total assets \begin{tabular}{|} $ \\ \hline \hline \end{tabular} Liabilities and Shareholders' Equity Accounts payable, purchases Dividends payable Common shares Retained earnings Total liabilities and stockholders' equity \$