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3. Prepare a Selling and Administrative Expense budget 4. Prepare a cash budget for January through March and for the first quarter in total. The company maintains a minimum cash balance of $100,000 and this was the ending cash balance in the cash account on December 31. 5. Prepare the Budgeted Income Statement based on data including pertinent computed data from relevant budgets prepared above Additional Data: Eastexpeperce shows that 40% of sales are collected in the month of the sale, and 60% in the month following the sale. Other expenses include $165,000 per month for rent, $704,000 for advertising, and $176,000 per month for depreciation. - All costs are paid in the current month except inventory purchases, which are paid in the month following the purchase (ha-January purchases of inventory are paid in February). The company has an open line of credit with a bank and can borrow at an annual rate of 12%. For simplificationlassume that all loans are made at the beginning of the month when a borrowing need is identified and repayments are made at the end of a month when the company has excess caekg.e. this company does not take out additional loans to pay currant loans.) Also, interest associated with a loan is only paid at the time when that loan is paid (hex a loan is only paid if there is enough cash to pay off the whole loan, any Interest associated with it, and the company still has enough cash laft over to maet its requirement for the minimum cash balance.) Interest expense if it oxiot however, should be reported in the income statement discussed in the video so take note). Label tha budgots prepared in Stops 1.5 as budget scanarlo A. 5. Ropoat stops 2.5 for budget scenerioa B and C using the following Desired Ending Inventory ass umptions: 6. Write a brief analysis of the three inventory policles depicled in the budget scenarios A,B and C and recommend a policy that the company should implement. Give reasons for your recommendation. Your Write-up should be based on the results you obtained from the analyses in steps 1.5 above for each of the peaparife. A, B, and C. Assume that you are writing on behalf of a professional consultant advising the President of the company about the campany's inventory policles, Your write-up should be In the form of a one-page Memo to tha Presldent of the company. Organization, grammar, and spelling aro Important. 3. Prepare a Selling and Administrative Expense budget 4. Prepare a cash budget for January through March and for the first quarter in total. The company maintains a minimum cash balance of $100,000 and this was the ending cash balance in the cash account on December 31. 5. Prepare the Budgeted Income Statement based on data including pertinent computed data from relevant budgets prepared above Additional Data: Eastexpeperce shows that 40% of sales are collected in the month of the sale, and 60% in the month following the sale. Other expenses include $165,000 per month for rent, $704,000 for advertising, and $176,000 per month for depreciation. - All costs are paid in the current month except inventory purchases, which are paid in the month following the purchase (ha-January purchases of inventory are paid in February). The company has an open line of credit with a bank and can borrow at an annual rate of 12%. For simplificationlassume that all loans are made at the beginning of the month when a borrowing need is identified and repayments are made at the end of a month when the company has excess caekg.e. this company does not take out additional loans to pay currant loans.) Also, interest associated with a loan is only paid at the time when that loan is paid (hex a loan is only paid if there is enough cash to pay off the whole loan, any Interest associated with it, and the company still has enough cash laft over to maet its requirement for the minimum cash balance.) Interest expense if it oxiot however, should be reported in the income statement discussed in the video so take note). Label tha budgots prepared in Stops 1.5 as budget scanarlo A. 5. Ropoat stops 2.5 for budget scenerioa B and C using the following Desired Ending Inventory ass umptions: 6. Write a brief analysis of the three inventory policles depicled in the budget scenarios A,B and C and recommend a policy that the company should implement. Give reasons for your recommendation. Your Write-up should be based on the results you obtained from the analyses in steps 1.5 above for each of the peaparife. A, B, and C. Assume that you are writing on behalf of a professional consultant advising the President of the company about the campany's inventory policles, Your write-up should be In the form of a one-page Memo to tha Presldent of the company. Organization, grammar, and spelling aro Important