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Monthly operating expenses for the company are given below: Insurance is paid on an annual basis, in November of each year. The company plans to

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Monthly operating expenses for the company are given below: Insurance is paid on an annual basis, in November of each year. The company plans to purchase $16,000 in new equipment during May and $40,000 in new equipment during June; both purchases will be for cash. The company declares dividends of $15,000 each quarter, payable in the first month of the following quarter. A listing of the company's ledger accounts as of March 31 is given below: The company maintains a minimum cash balance of $50,000. All borrowing is done at the beginning of a month; any repayments are made at the end of a month. The company maintains a minimum cash balance of $50,000. All borrowing is don at the beginning of a month; any repayments are made at the end of a month. The company has an agreement with a bank that allows the company to borrow in increments of $1,000 at the beginning of each month. 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 $50,000 in cash. Prepare a master budget for the three-month period ending June 30 . Include the following detailed budgets: A) A sales budget, by month and in total. B) A schedule of expected cash collections from sales, 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. E) 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 $50,000. F) A budgeted income statement for the three-month period ending June 30 . Use the contribution approach. G) A budgeted balance sheet as of June 30

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