make all calculations based on the data for the Vairiant ( marked yellow ) . it have to be in the Excel , and you must review the attached tabels on the third page to be able to complete the solution.

Master Budget with Supporting Schedules You have just been hired as a management trainee by Cravat Sales Company, a nationwide distributor of a designer's silk ties. The company has an exclusive franchise on the distribution of the ties, and sales have grown so rapidly over the last few years that it has become necessary to add new members to the management team. You have been given responsibility for all planning and budgeting. Your first assignment is to prepare a master budget for the next three months, starting April 1. You are anxious to make a favorable impression on the president and have assembled the information below. The company desires a minimum ending cash balance each month of $10,000. The ties are sold to retailers for $8 each. Recent and forecasted sales in units are as follows: January (actual) February (actual) March (actual) April May June July August Var 7 32000 27000 21 000 37 000 43 000 64000 43 000 34000 each. The large buildup in sales before and during June is due to Father's Day. Ending inventories are supposed to equal 90% of the next month's sales in units. The ties cost the company SS 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 25% of a month's sales are collected by month-end. An additional 50% is collected in the following month, and the remaining 25% is collected in the second month following sale. Bad debts have been negligible. The company's monthly selling and administrative expenses are given below: Variable: Sales commission si pertie Fixed Wapes and salaries 522 000 Utilities $14000 Insurance SI 200 Depreciation SI 500 Miscellaneous 53000 Fixed Wages and salaries 522 000 Utilities $14000 Insurance SI 200 Depreciation $1 500 Miscellaneous 53000 All selling and administrative expenses are paid during the month, in cash, with the exception of depreciation and insurance expired. Land will be purchased during May for $25,000 cash. The company declares dividends of $12,000 each quarter, payable in the first month of the following quarter. The company's balance sheet at March 31 is given below: Assets Cash $ 14,000 Accounts receivable (S48,000 February sales: S162,000 March sales 216,000 Inventory (31.500 units) 157,500 Prepaid insurance 14.400 Fixed assets, net of depreciation 172.700 Total assets 5574.000 Liabilities and Stockholders' Equity Accounts payable $ 85,750 Dividends payable 12.000 Capital stock 300,000 Retained carings 176.50 Total liabilities and stockholders equity 5574,600 The company has an agreement with a bank that allows it to borrow in increments of $1,000 at the beginning of each month, up to a total loan balance of $40,000. The interest rate on these loans is 1% per month, and for simplicity, we will assume that interest is not compounded. At the end of the quarter, the company would pay the bank all of the accumulated interest on the loan and as much of the loan as possible (in increments of $1,000), while still retaining at least $10,000 in cash. Required: Prepare a master budget for the three-month period ending June 30. Include the following detailed budgets: merchandise purchases, by month and in total. 5. A cash budget. Show the budget by month and in total. 6. A budgeted income statement for the three-month period ending June 30. Use the contribution approach. 7. A budgeted balance sheet as of June 30. ontu M rool 2000 LOOD 512000 15200 LA M 45000 84000 42000 T4000 bomba Much 210003158000 collected in the following month 25. collected in the month following AD1236000 251 collected in the month of 50collected in the following month 5 collected in the second month following Mower $384000 259 collected in the month of Sos collected the following mooth June 5512000 25 collected in the month of sale Total cash collection S42000 16000 285000 86000 172000 258000 120000 128000 855000 205000 275000 374000 Merchando purchate budget Budgeted unit Add: Lading to (305 of als in the following month Totaledd Leses Beginning into April June 32000 19000 54000 38100 57600 STOC (430000 15000 1430000 90 ISTO 100600 102700 31500 3670 ST500 (Goin bal} 14200 61300 451001 Required purchaus Utcoit b Required dollar purchase 221000 303500 225500 75600 4 Schedule of expected each disbursement Lord M ESTO 110500 10500 22000 Accowapable Api put 221000 oncehalf paid in the mouth of purchase skal paid in the following month of purchase Man purchase 308150 ons half paid the month of purchase one-half paid in the following month of purchase Sune purch122s0od est paid in the oth of purch Totalcal 1525 309500 SATSO 112854 26150 136250