Please help with solving question 1 for Ch. 8 HW. Thank you.

1 25 Done You have just been hired as a new management trainee by Earrings Unlimited, e distributor of earrings to various retail outlets located in shopping malls across the country. In the past the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. Since you are well frained in budgeting, you have decided to prepare a master budget for the upcoming second quarter to this end, you have worked with accounting and other areas to gather the information assembled below The company sells many styles of earrings, but all are sold for the same poce_$10 per pair. Actual sales of earrings for the last three months and budgeted sales for the next six months follow in polts of earrings) January (actual) February (actual) March actual pell ( het) May (budget 20,000 Jan (budget) 20,000 Oy (hudgart > 00.000 August (budget 65,000 September (budget) 100,000 se,000 30,000 28,000 25,000 The concentration of sales before and during May is due to Mother's Day. Sufficient inventory should be on hand at the end of each months to supply 40% of the eanings sold in the following month Suppliers are paid $1 for a pair of earrings. One of a month's purchases is paid for in the month of purchase the other half is paid for in the following month All sales are on Credit Only 20% of a month sales are collected in the month of sale. An additional 70% collected in the following month and the remaining 10% is collected in the second month following sale Bad debts have been negligible Monthly operating expenses for the company are given below: Var falas ixed Arti 100,00 1 The company's balance sheet as of March 31 is given below. 5 $ 74.000 ebook Assets Cash Accounts receivable ($25,000 February sales $320,000 March ales) thentors Prepaid insurance Property and equipent (net) Total assets Liabilities and Stockholders fqusty Accounts payable Dividends payable Common stock ilutain canines Total liabilities and stockholders equity 36,000 100,000 21,000 0.000 $ 1.495,000 $ 100,000 mo,000 5.10. 31,495.000 The company maintains a minimum cash balance of $50,000. All borrowing is done at the beginning of a month any repaymonts are made at the end of a mont The company has an agreement with a bank that allows the company to borrow in increments of $1.000 at the beginning of each month the interest rate on these loans is per month and for simplicity we will assume that interest is not compounded At the end of the quarter, the company would pay the bank all of the accumulated interest on the loan and as much of the loan as possible increments of $1.000), while still retaining at least 550,000 in cash Required: Prepare a master budget for the three month period ending June 30. Include the following detailed schedules 1a Asales budget by month and in total b. A schedule of expected cash collections by month and in total c. A merchandise purchases budget in units and in dollars. Show the budget by month and in total M 1 1 25 points Required: Prepare a master budget for the three month period ending June 30. Include the following detailed schedules 1. a. A sales budget, by month and in total b. A schedule of expected cash collections by month and in total A merchandise purchases budget in units and in dollars Show the budget by month and in total d A schedule of expected cash disbursements for merchandise purchases, by month and in total 2. A cash budget Show the budget by month and in total Determine any borrowing that would be needed to maintain the minimum cash balance of $50.000 A budgeted Income statement for the three month period ending June 30 Use the contribution approach 4 A budgeted balance sheet as of June 30 och Complete this question by entering your answers in the tabs below. Shit fequired LA Fequired Required IC Required ID Required 2 Required Required 4 Prepare a master budget for the three month period ending June 30 that includes a merchandise purchases budget in units und in dollars. Show the budget by month and in total Earrings Unlimited Merchandise Purchases Budget April May June Quarter Ouderunt 0 Tot needs O 0 0 0 0 0 0 Reged se Una ant Red Durch os 05 o 1 25 port Required: Prepare a master budget for the three month period ending June 30 Include the following detailed schedules La Asales budget by month and in total b. A schedule of expected cash collections, by month and in total A merchandise purchases budget in units and in dollars. Show the budget by month and in total, d. A schedule of expected cash disbursements for merchandise purchases by month and in total 2. A cash budget. Show the budget by month and in total Determine any borrowing that would be needed to maintain the minimum cash balance of $50,000 3 A budgeted income statement for the three month period ending June 30. Use the contribution approach: 4 A budgeted balance sheet as of June 30, Complete this question by entering your answers in the tabs below. Reged In Required 18 Required 1C Required 10 Required 2 Required 3 Required o Prepare a master budget for the three month period ending June 30 that includes a sales budget, by month and in total Sales Budget April May June Quarter Plan Required 18> 1 25 pont Required: Prepare a master budget for the three month period ending June 30. Include the following detailed schedules 1a A sales budget by month and in total b. A schedule of expected cash collections by month and in total CA merchandise purchases budget in units and in dollars. Show the budget by month and in total d. A schedule of expected cash disbursements for merchandise purchases, by month and in total 2. A cash budget. Show the budget by month and in total. Determine any borrowing that would be needed to maintain the minimum cash balance of $50,000 3. A budgeted income statement for the three-month period ending June 30. Use the contribution approach 4 A budgeted balance sheet as of June 30. Block Ask Complete this question by entering your answers in the tabs below. Required IA Required 18 Required 10 Required 10 Required 2 Required Required 4 Perences Prepare a master budget for the three-month period ending June 30 that includes a schedule of expected cash collections, by month and in total Earrings Unlimited Schedule of Expected Cash Collections April May June Quarter $ 0 0 February sales March sales Apels May sales June sales Tot cash collections O 0 0 os os 05 0 2. A cash budget Show the budget by month and in total Determine any borrowing that would be needed to maintain the minimum cash balance of $50.000 3. A budgeted Income statement for the three month period ending June 30. Use the contribution approach 4. A budgeted balance sheet as of June 30 Complete this question by entering your answers in the tabs below. Required 1A Required 4 Required 1B Required 10 Required 10 Required 3 Required 2 Prepare a master budget for the three-month period ending June 30 that includes a cash budget. Show the budget by month and in total. Determine any borrowing that would be needed to maintain the minimum cash balance of $50,000. (Cash deficiency, repayments and interest should be indicated by a minus sign) May June Quarter nes O 0 O 0 0 Eanings Unlimited Cash Budget For the Three Months Ending June 30 April Beginning cash balance Add cobections from customers Total cash available 0 Les cash disbursements Merchandise purchases Advertising Rent Salaries Commissions Lates Equipment purchases Dividends paid Totalcanhasbursements 0 Exco (ficiency of cathavaatetver disbursements Finanang Bobonos payments met Totoong Engance 0 0 0 O 0 0 O 0 0 0 0 05 Prev Next > 2. A cash budget Show the budget by month and in total. Determine any borrowing that would be needed to maintain the minimum cash balance of $50,000 3. A budgeted income statement for the three-month period ending June 30 Use the contribution approach 4. A budgeted balance sheet as of June 30 Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 10 Required 10 Required 2 Required 3 Required 4 Prepare a master budget for the three-month period ending June 30 that includes a budgeted income statement for the three- month period ending June 30. Use the contribution approach. Earrings Unlimited Budgeted Income Statement For the Three Months Ended June 30 Variable expenses 0 D Foced expenses 0 0 0 1 2 A cash budget show the budget by month and in total, Determine any borrowing that would be needed to maintain the minimum cash balance of $50,000 3. A budgeted income statement for the three-month period ending June 30. Use the contribution approach 4. A budgeted balance sheet as of June 30 5 Complete this question by entering your answers in the tabs below. Required IA Required 18 Required 1C Required 10 Required 2 Required 3 Required 4 Prepare a master budget for the three month period ending June 30 that includes a budgeted balance sheet as of June 30. Earrings Unlimited Budgeted Balance Sheet June 30 Assets Pri Burs Total assets $ Liabilities and Stockholders' Equity O Totes and stockholders equity 5 0