Master Budeget w/ Supporting Scheduales: Starts @Case 8-29

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 S5 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 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 sec- ond month following sale. Bad debts have been negligible. The company's monthly selling and administrative expenses are given below: S1 per tie $22.000 Wages and salaries $14,000 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 S25,000 cash. The company declares dividends of s12000 each in the first month of the following quarter The company's balance sheet at March 31 is given S 14,000 Accounts receivable ($48.000 February sales. $168,000 March salesl 216,000 31 500 unts0 Fixed assets, net of $574,600 Liabilities and Stockholders' Equity 85,750 176 850 Retained earnings $574 600 Total liabilities and stockholders' oquty The company has an agreement with a bank that allows borrowin increments of $1,000 at the beginning of each month, upto a total loan balance of s150.000, me interest end of the quarter, the company would pay the bank al of the accumulated interest on the loan and as much of the loan as possible (in increments of SI,000, while still retaining at least SI0,000 in Prepare master budget for the three-month period ending lune 30 Include the following detailed I. A sales budget by month and in tolal. intotal by month and a A of cash collections sales,by month and e. A merchandise purchases budget and in dollars. Show the purchases, by and in month d A schedule of expected cash disbursements for merchandise 2. A cash budget. Show the budget hymonth and in voual. Use the contribution 3. A budgeted income statement for the three-month period ending June 30 4. A budgeted balance sheet as of June 30