month. The interest rate on these loans is $1\%$ per month and for simplicity we will assume that interest is not compounded. At the enc 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 $$1,000),$ while still retaining at least $$59,000$ in cash.

Required:

Prepare a master budget for the three$-$month period ending June $30.$ Include the following detailed schedules:

a$.$ A sales budget, by month and in total.

b$.$ A schedule of expected cash collections, by month and in total.

c$.$ A merchandise purchases budget in units and in dollars. Show the budget by month and in total.

d$.$ A schedule of expected cash disbursements for merchandise purchases, by month and in total.

A cash budget. Show the budget by month and in total. Determine any borrowing that would be needed to maintain the minimum cash balance of $$59,000.$

A budgeted income statement for the three$-$month period ending June $30.$ Use the contribution approach.

A budgeted balance sheet as of June $30.$

Complete this question by entering your answers in the tabs below.

Req $1$B

Req $1C$

Req $1$D

Req $2$

Req $3$

Req $4$

Prepare a master budget for the three$-$month period ending June $30$ that includes a cash budget. Show the budget by month and in total. Determine any borrowing that would be needed to maintain the minimum cash balance of $$59,000.($Cash deficiency, repayments and interest should be indicated by a minus sign.$)$

$\backslash$table$[[$Earrings Unlimited$],[$Cash Budget$],[$For the Three Months Ending June $30],[,$April,May,June,Quarter$],[$Beginning cash balance$],[$Add collections from customers$],[$Total cash available$],[$Less cash disbursements:$],[$Merchandise purchases$],[$Advertising$],[$Rent$],[$Salaries$],[$Commissions$],[$Utilities$],[$Equipment purchases$],[$Dividends paid$],[$Total cash disbursements$],[$Excess $($deficiency$)$ of cash available over disbursements$],[$Financing:$],[$Borrowings$],[$Repayments$],[$Interest$],[$Total financing$],[$Ending cash balance,,,,$]]$