Our company sells noserings.

Please prepare a master budget for the three-month period ending June 30. Include the following detailed budgets (by month and in total):

Sales budget

Schedule of expected cash collections from sales

Purchases budget (in units and in dollars)

Expected cash disbursements for merchandise purchases

Sales price of product = $10/unit

Actual Sales are as follows:

January $20,000

February $26,000

March $40,000

Budgeted sales:

September $25,000

August $28,000

July $30,000

June $50,000

May $100,000

April $65,000

We maintain enough inventory on hand to cover 40% of the next month's sales.

We pay suppliers $4/unit. We pay our supplier 50% of what we purchase in the month of the purchase and 50% in the following month.

With regard to sales to customers (all sales are on credit), cash from sales is collected as follows:

20% in the month of the sale

70% in the month following the sale

10% in the second month following the sale.

Costs:

Sales commissions is 4%.

Fixed costs: 1) Advertising $14,000, 2) Rent $3,000, 3) Salaries $106,000, 4) Utilities $200,000, 5) Rent $18,000, 6) Insurance $7,000.