Please complete the budget income statement and budgeted balance sheet. The rest has been done.

Peoples Company manufactures and sells a seasonal product that has peak sales in the third quarter. The following informarion concerns operations for Year 3 (the coming year) and for the first two quarters of year 4 The company sells a single product for $25 a unit. Budgeted sales in units for the next six quarters are as follows (all sales are on credit): a. Year 3 Quarters 1 2 3 90,000 140,000 80,000 4 70,000 Year 4 Quarters 1 2 95,000 160,000 Budgeted unit sales b Sales are collected in the following way: 75% in the quarter the sales are made, and the remaining 25% in the following quarter. On January 1, Year 3, the company's balance sheet showed $420,000 in accounts receivable, all of which will be collected in the first quarter of the year. Bad debts are negligible and can be ignored. The company desires an ending inventory at the end of each quarter equal to 30% of the budgeted unit sales for the next quarter. On December 31, Year 2, the company had 50,000 units on hand. c. d. The company purchases merchandise at a cost of $15 a unit. e. Inventory purchases are paid for in the following way: 60% paid in the quarter the purchases are made, and the remaining 40% paid in the following quarter. On january 1, Year 3, the company's balance sheet showed $450,000 in accounts payable for the materials purchases, all of which will be paid for in the first quarter of the year. Quarterly operating expenses are: f. Adverting expense Salaries Sales commissions Rent Utilities Insurance Depreciation $ 500,000 225,000 5% of sales 60,000 20,000 10,000 10,000 g. The company purchased $400,000 of equipment on January 2, 2013 and uses straight line depreciation over 10 years. The balances for these accounta are as follows: Accounts Receivable $ 420,000 Accounts Payable 450,000 Equipment 400,000 Accumulated Depreciation 20.000 Land 65,120 Please use all relevant information for the "Data" sheet. 1. Sales Budget- Sales Budget Year 3 Quarters 2 3 140,000 80,000 25.00 $ 25.00 $ 1 90,000 25.00 S Budgeted Unit Sales Selling Price per Unit 4 Year 70,000 380,000 25.00$ 25.00 $ Total Sales $2,250,000 $3,500,000 $2,000,000 $1,750,000 $9,500,000 1. Cash Collections Schedule - Accounts Receivable Beginning First Quarter Second Quarter Third Quarter Fourth Quarter Cash Collections Schedule Year 3 Quarters 1 2 3 4 4 Year $ 420,000 $ 420,000 $1,687,500 $ 562,500 $2,250,000 $2,625,000 $ 875,000 $3,500,000 $1,500,000 $ 500,000 $2,000,000 $1,312,500 $1,312,500 Total Cash Collection $ 2,107,500 $3,187,500 $2,375,000 $1,812,500 $9,482,500 Accounts Receivable Ending Balance - $437,500 2. Purchases Budget - Purchases Budget Budgeted Unit Sales Desired Ending Inventory Total Needs Beginning Inventory Required Purchases Cost per Unit 1 90,000 42,000 132,000 50,000 82,000 15.00$ Year 3 Quarters 2 3 4 140,000 80,000 70,000 24,000 21,000 28.500 164,000 101,000 98,500 42,000 24,000 21,000 122,000 77,000 77,500 15.00$ 15.00$ 15.00$ Year 380,000 28.500 408,500 50,000 358,500 15.00 $ Total Purchases $1,230,000 $1,830,000 $1,155,000 $1,162,500 $5,377,500 Merchandise Inventory Ending Balance - $427,500 3. Cash Payments Schedule - Accounts Payable First Quarter Second Quarter Third Quarter Fourth Quarter Cash Payments Schedule Year 3 Quarters 1 2 3 4 Year $ 450,000 $ 450,000 $ 738,000 $ 492,000 $ 1,230,000 $1,098,000 $ 732,000 $1,830,000 $ 693,000 $ 462,000 $1,155,000 $ 697,500 $ 697,500 Total Cash Paid $1,188,000 $1,590,000 $1,425,000 $1,159,500 $5,362,500 Accounts Payable Ending Balance - $465,000 4. Cash Budget- Cash Budget Year 3 Quarters 1 2 3 4 Year $ 55,000 $ 50,000 $ 242,410 $ 277,410 $ 55,000 $2,107,500 $3,187,500 $2,375,000 $1,812,500 $9,482,500 $ 2,162,500 $3,237,500 $2,617,410 $2,089,910 $9,537,500 Beginning Cash Balance Add: Cash Collection from Customers Total Cash Available Less: Cash Disbursements Purchase of Inventory Sales Commission Advertising Rent Salaries Utilities Insurance Equipment Purchases Total Disbursements Excess/(Deficiency) of cash available $1,188,000 $1,590,000 $1,425,000 $1,159,500 $5,362,500 $ 112,500 $ 175,000 $100,000 $ 87,500 $475,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $2,000,000 $ 60,000 $ 60,000 $ 60,000 $60,000 $ 240,000 $ 225,000 $ 225,000 $ 225,000 $225,000 $ 900,000 $ $ 20,000 $20,000 $ 20,000 $ 20,000 $80,000 $ 10,000 $ 10,000 $10,000 $ 10,000 $ 40,000 $ 400,000 $ 400,000 $2,515,500 $2,580,000 $2,340,000 $2,062,000 $9,497,500 $ (353,000) $ 657,500 $ 277,410 $ 27,910 $ 40,000 Financing Borrowings Repayments (Including Interest) Total Financing Cash Balance, Ending $ 403,000 $ $ $ (415,090) $ 403,000 $ (415,090) $ $ $ 50,000 $ 242,410 $ 277,410 S 23,000 $426,000 $ (415,090) 23,000 $ 10,910 50,910 $ 50,910 Working Notes - Working Notes Year 3 Quarters 1 2 3 90,000 140,000 80,000 25.00 $ 25.00 $ $ 25.00 $ Budgeted Unit Sales Selling Price 4 70,000 25.00 $ Year 4 Quarters 1 2 95,000 160,000 25.00 $ 25.00 $ Total Sales $2,250,000 $3,500,000 $2,000,000 $1,750,000 $2,375,000 $4,000,000 Credit Collection: In the Same Quarter In the following Quarter 75% 25% $1,687,500 $2,625,000 $1,500,000 $1,312,500 $1,781,250 $3,000,000 $ 420,000 $ 562,500 $ 875,000 $ 500,000 $ 437,500 $ 593,750 30% Ending Inventory Beginning Inventory 42,000 50,000 24,000 42,000 21,000 24,000 28,500 21,000 48,000 28.500 48,000 Purchase Inventory 82,000 122.000 77,000 77,500 114,500 Cost of Inventory $ 15.00 $1,230,000 $1,830,000 $1,155,000 $1,162,500 $1,717,500 Credit Payments: In the same quarter In the following Quarter 60% 40% $ 738,000 $1,098,000 $ 693,000 $ 697,500 $1,030,500 $ 450,000 $ 492,000 $ 732,000 $462,000 $465,000 $ 687,000 5% Operating Expenses: Advertising Expenses Salaries Sales Commission Rent Utilities Insurance Depreciation $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 500,000 $ 225,000 $ 225,000 $225,000 $225,000 $225,000 $ 112,500 $ 175,000 $100,000 $ 87,500 $ 118,750 $ 60,000 $ 60,000 $ 60,000 $60,000 $60,000 S 20,000 $ 20,000 $20,000 $ 20,000 $ 20,000 $ 10,000 $10,000 $ 10,000 $ 10,000 $10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 Equipment Purchased $ 400,000 5 Peoples Company Budgeted Income Statement For the Year Ending December 31, 20Y3 Sales Cost of Goods Sold Gross Profit Operatingexpenses: Advertising expense Salaries expense Sales commisson expense Rent expense Utilities expense Insurance expense Depreciation expense Interest expense Total Operating expenses Net operating income 6 Peoples Company Budgeted Balance Sheet December 31, 20Y3 Assets Current Assets Cash Accounts receivable Merchandise inventory Total current assets $ Plant Assets Land Equipment Less: Accumulated Depreciation Total Assets Liabilities Current Liabilities Accounts Payable Interest payable Notes payable Total current liabilities Notes payable (long-term) Total Liabilities Stockholders' Equity Common Stock $ 641,336 Paid in capital in excess of par 559,319 Retained Earnings 31,015 Total stockholders' equity Total liabilities and stockholders'equity