Master budget ( i need the answer in the text form )

The following data relate to the operations of HASF Company a wholesale distributor of consumer goods Current assets as of March 31

Cash 48,000

A/c receivable 224,000

Inventory 60,000

Building and equipment net 370,000

A/c payable 93,000

Capital stock 500,000

Retained earnings 109,000

1 Gross profit is 40% of sales

2 Actual and budgeted sales data

March 280,000

April 400,000

May 600,000

June 300,000

July 200,000

3 sales are 20% for cash and 80% on credit. Credit sales are collected in the month following sales

4 Each month ending inventory should equal to 25% of following month cost of goods sold

5 one half of a month s inventory purchase is paid for in the month of purchase, other half is paid for in the month.

6 Monthly expense are follows

• Salaries and wages 27,000
• Advertising exp 70,000 per month
• Shipping , 5% of sales
• Depreciation 42,000 per quarter

Note these expenses are paid monthly

7 Equipment costing 1,700 will be purchase for cash in May, During June other equipment will be purchase for cash at cost 84,500

8 Management would like to maintain a minimum cash balance of at least 30,000 at the end of each month

9 the company has an agreement with a local bank that allows the company to borrow in the increments of 1,000 at the beginning of each month up to a total loan balance of 20,000. The interest rate on these loan is 1`% per month

10 During April company declare and pay 45, in cash dividends

Required

1. income statement
2. balance sheet