Name\ Anthony Kim Corporation is preparing the master budget for the quarter ending March 31.\ It sells a single product for

$25

a unit.\ Sales are

30%

cash and

70%

credit. The credit sales are collected the following month.\ No credit sales and no purchases of merchandise occurred in December of the prior year.\ The December 31 inventory of finished goods is 520 units and projected sales are

600,750,800

, and 700 units for the first four months of the year.\ The desired ending inventory for each month is

80%

of the next month's sales.\ The product costs

$15.00

per unit.\

25%

of the purchases are paid in the month of purchase and

75%

are paid in the following month.\ Operating expenses are paid in the month incurred and consist of sales commissions (

15%

of sales), freight cost (

3%

of sales), office salaries of

$2,800

a month, and rent of

$3,400

per month.\ A minimum cash balance of

$5,000

must be maintained.\ The beginning cash balance is

$5,100

.\ Loans are obtained at the end of the month in which a cash shortage occurs.\ Interest is

1%

per month based on the beginning-of-month loan balance and must be paid at the end of each month.\ Whenever an excess cash balance occurs, loan repayments are made at the end of the month.\ Round interest payments to the nearest whole dollar.\ The tax rate is

40%

.\ Prepare a master budget for the first quarter that includes a sales budget, a cash receipts schedule, a merchandise purchases budget, a schedule of cash disbursements for merchandise, a selling and administrative expense budget, and a cash budget for each month. Also prepare a budgeted income statement for the quarter.

Name: Anthony Kim Corporation is preparing the master budget for the quarter ending March 31. It sells a single product for $25 a unit. Sales are 30% cash and 70% credit. The credit sales are collected the following month. No credit sales and no purchases of merchandise occurred in December of the prior year. The December 31 inventory of finished goods is 520 units and projected sales are 600,750,800, and 700 units for the first four months of the year. The desired ending inventory for each month is 80% of the next month's sales. The product costs $15.00 per unit. 25% of the purchases are paid in the month of purchase and 75% are paid in the following month. Operating expenses are paid in the month incurred and consist of sales commissions ( 15% of sales), freight cost ( 3% of sales), office salaries of $2,800 a month, and rent of $3,400 per month. A minimum cash balance of $5,000 must be maintained. The beginning cash balance is $5,100. Loans are obtained at the end of the month in which a cash shortage occurs. Interest is 1% per month based on the beginning-of-month loan balance and must be paid at the end of each month. Whenever an excess cash balance occurs, loan repayments are made at the end of the month. Round interest payments to the nearest whole dollar. The tax rate is 40%. Prepare a master budget for the first quarter that includes a sales budget, a cash receipts schedule, a merchandise purchases budget, a schedule of cash disbursements for merchandise, a selling and administrative expense budget, and a cash budget for each month. Also prepare a budgeted income statement for the quarter