Mahendra Toys is a wholesale distributor of gifts and accessories. The following data relates to their balance sheet as of 31 December 2019 $ 8.000 $ 42.000 S 10.200 $135,000 $196,200 Current Assets Cash Accounts Receivable Inventory Building and equipment, Net Total Assets Current Liabilities Accounts Payable Common Shares Retained Earnings Total Liabilities & Owner's Equity a. The gross margin for the company is 40% of sales, b. Actual and budgeted sales data are as follows- $ 30.200 $120.000 $ 46,000 $196,200 December (Actual) $80,000 January $62,000 February $92,000 March $67,000 April $70,000 C Sales are 30% in cash and 70% in credit. Credit sales are collected in the month following the sale d. Each month's ending inventory should be 25% of the following month's budgeted cost of goods sold e 30% of the month's inventory purchases are paid for in the month of purchase the remaining 70% is paid for in the following month f. Monthly expenses are as follows: salaries, $10,000, rent, $6,000; advertisements, $2.000, other expenses (excluding depreciation), 12% of sales. Depreciation is $3,200 for the quarter and includes depreciation on new assets acquired during the quarter. & Equipment will be acquired for cash: $4,000 in January and $6,000 in March h Management would like to maintain a minimum cash balance of $6,000 at the end of each month Assume the company can borrow at 0% interest and they do not pay any income tax. All borrowing occurs at the beginning of a month. The company will, as far as it is able, repay outstanding loans at the end of each month Question 1: Prepare the following budgets for each of the first three months of 2020, [15 Marks] Schedule of Expected Cash Collection Merchandise Purchase Budget Schedule of Cash Disbursement for Purchase Schedule of Cash Disbursement for S & A expenses Cash Budget Question 2: Prepare a budgeted income statement for the first three months of 2020 and a budgeted balance sheet as of March 31, 2020 [5 Marks]