Please assist with the following two questions below:

A wholesale distributor of earrings. At the start of its second quarter Q2).hires you to manage its operations. They have not prepared budgets in the past, but you decide to prepare a budget for Q2 its sells many styles of earrings, all at a selling price of $10 per pair. Actual unit sales for Qi and budgeted unit sales for Q2 and Qs are as follow: Actual Unit Sales Budgeted unit Sales January 20,000 April 65,000 July 30,000 February 26,000 May 100,000 August 28,000 March 40,000 June 50,000 September 25,000 The concentration of sales in the spring is due to Mother's Day. All inventory sales are made on credit and bad debts are negligible. They collect 20% in the month of sale, 709 in the following month, and 10% in the second month following the sale. They only cash collections are from inventory sales. They maintain an ending inventory balance sufficient to supply 40% of the budgeted unit sales in the following month. They pay their suppliers s4 for a pair of earrings All inventory purchases are paid 50% in the month of purchase and 50% in the following month There monthly operating expenses, other than the cost of goods sold, are as follows: Monthly Expenses Variable expenses: Sales commissions 3% of sales Fixed expenses: Advertising expense $200,000 Rent expense $18,000 Salary expense $106,000 Utility expense $7,000 Insurance expense $3,000 Depreciation expense $14,000 All expenses, other than insurance and depreciation, are paid in cash in the month the expense is incurred. The company pays its annual insurance premium of $36,000 on November 1. The company plans to purchase for cash $25,000 of new equipment in May and $30,000 of new equipment in June. In March, the company declared a $15,000 dividend which is payable on April 15. The balance sheet on April 1 is as follows: Assets Cash $ 224,000 Accounts receivable (al 346,000 Inventory [b] 104,000 Prepaid insurance 21,000 PP&E, net of depreciation 950,000 Total assets $1,645,000 Liabilities and Stockholders' Equity Accounts payable (0) $ 100,000 Dividends payable 15,000 Common stock 800,000 Retained earnings 730,000 Total liabilities and stockholders' equity $1,645,000 Tal Includes $25,000 of February sales (1096), plus $320,000 of March sales (80%) [6] 25,000 units (40% of budgeted sales in April) at 54 per unit [c1 50% of inventory purchases in March 6. Budgeted Income Statement, Q2 (3 months) Sales Variable costs Contribution margin Fixed costs Net income 7. Budgeted Balance Sheet, June 30 Assets Total assets Liabilities and Stockholders' Equity Total liabilities and stockholders' equity