please ,it is urgent .Thank you
Your friend, Catherine Ross, owns Knockoffs Unlimited, a nationwide distributor of low-cost imitation designer necklaces. She has contacted you for some assistance because the accounting clerk, George Forrest, recently won a sum of money and decided to resign immediately. Catherine knows that you are completing an accounting course at Cape Breton University and hopes you can prepare the cash budget for the upcoming quarter (April, May and June, 2021). Catherine has provided you with the budgets completed by George. She has also provided you with additional information that will assist with the completion of the cash budget. Completed Budgets (April, May, June, and Quarter Total, 2021) April May June Quarter Sales Budget 70,000 80,000 55,000 205,000 Unit sales price 10 10 10 10 Sales in dollars $700,000 $800,000 $550,000 $2,050,000 Cash Colletions Budget April May June Quarter February sales $ 31,000 $ 31,000 March sales 308,000 $44,000 352,000 April sales 140,000 490,000 70,000 700,000 May sales 160,000 560,000 720,000 June sales 1 10,000 1 10,000 Total 479,000 694,000 740,000 1,913,000 Merchandise Purchases Budget April May June Quarter Sales in units (storage systems) 70,000 80,000 55,000 205,000 Add: Budgeted ending inventory 32,000 22,000 24,000 24,000 Total needs 102,000 102,000 79,000 229,000 Less: Beginning finished goods inventory 28,000 32,000 22,000 28,000 Required unit purchases 74,000 70,000 57,000 201,000 Unit cost $ 4 $ 4 $ 4 $ Required Purchases $ 296,000 $ 280,000 $ 228,000 $ 804,000 Cash Disbursements - Inventory Purchases April May June Quarter March purchases $ 108,000 $ 108,000 April purchases 148,000 148,000 296,000 May purchases 140,000 140,000 404,000 June purchases 1 14,000 1 14,000 $ 256,000 $ 288,000 $ 254,000 $ 798,000 Continued on the next page.ADDITIONAL INF ORMA T I 0N: Cash balance, April 1, 2021 = $5,000 The company's monthly selling and administrative expenses are provided below. All selling and administrative expenses are paid in the month incurred, with the exception of depreciation and insurance. Insurance is paid on an annual basis in December of each year. Variable expenses: Commissions 4% of sales Fixed expenses: Advertising $21 ,500 Rent 20,500 Wages & salaries 125,000 Utilities 9,000 Insurance 4,000 Depreciation 19,000 The company plans to purchase new equipment for cash in May ($18,000) and June ($45,000). The company wants to have an ending cash balance each month of $40,000. All borrowing is done at the beginning of the month. The interest on outstanding loans is 1% per month. Loan repayments and interest is only paid at the end of the month when there is sufcient cash to do so. (The company does not borrow to pay interest or repay loans.) REQUIRED: a. Prepare a cash budget in good form. Show the budget by month and in total. b. What will be reported on the budgeted balance sheet at June 30, 2021 for accounts receivable? Supporting calculations required. c. What will be reported on the budgeted balance sheet at June 30, 2021 for merchandise purchases payable? Supporting calculations required. You may use the template on the next page for the cash budget if you wish
