PART III - FIXED \& FLEXIBLE BUDGETS; VARIANCE ANALYSIS (chapters 22&23 review) Front Range Furniture is preparing a Cash Budget for the second quarter of the coming year. Management would like to give you additional exposure to budgeting during your internship and has assigned you the task of preparing this Cash Budget. You will present this to your accounting supervisor for review. The following data has been forecasted: Additional data: A. Sales are 40% cash and 60% credit. The collection pattern for credit sales is 50% in the month following the sale and 50% in the month thereafter. Total sales in March were $125,000. B. Purchases are all on credit, with 40% paid in the month of purchase; the balance is paid in the following month. C. Operating expenses are paid in the month they are incurred. D. A minimum cash balance of $25,000 is required at the end of each month. E. Loans are used to maintain the minimum cash balance. At the end of each month, Interest of 1% per month is paid on the outstanding loan balance as of the beginning of the month. Repayments are made whenever excess cash is available. Required: 1. Prepare the company's cash budget for May on the next page. Show the ending loan balance on May 1. task assigned is to create a flexible budget from the information below with a basic variance analysis. This will require review and approval before sending on to the company controller. Front Range Furniture provides the following Fixed Budget data for the year: Required: 2. Prepare a flexible budget performance report for the year using the contribution margin format on the appropriate tab of your working papers. You will be "flexing" the budget to a sales level of 21,000 . Be sure to complete all columns provided. Be sure to answer the questions below the chart in your working papers. Analyier Inaert your analyis here. You muy expand this teat bos as needed