please only do #3 (prepare a selling and administrative expense budget) - with forumas for each step
1. Prepare a sales budget for January through March and for the Quarter in total. The selling price per unit is $60.00. Use the last five digits in your ID number as basis for the data for budgeted sales in units. Budgeted sales are obtained by multiplying each number in the 10 by 10,000 . However, note that if your ID\# contains the number 0 use 10 instead (i.e, a 0 is equal to 100,000 .) For example, if the last five digits in your student ID are 14607, the budgeted sales in units would be: 2. Prepare a purchases budget and the schedule for Disbursements for Purchases for January through March and for the first quarter in total. Assume that the company only sells one product that can be purchased at $45.00 per unit. The market for this product is very competitive and customers highly value quality and on time delivery of the product. Also assume that currently it is company policy that ending inventory should equal 50% of next month's projected sales. 3. Prepare a Selling and Administrative Expense budget 4. Propare a cash budget for January through March and for the first quarter in total, The company maintains a minimum cash balance of $100,000 and this was the ending cash balance in the cash account on December 31 . 5. Prepare the Budgeted income Statement based on data including pertinent computed data from relevant budgets prepared above - Past experience shows that 40% of sales are collected in the month of the sale, and 60% in the month following the sale. - Other expenses include $165,000 per month for rent, $704,000 for advertising, and $176,000 per month for depreciation. - All costs are paid in the current month except inventory purchases, which are paid in the month following the purchase (i.e. January purchases of inventory are paid in February). - The company has an open line of credit with a bank and can borrow at an annual rate of 12%. For simplification assume that all loans are made at the beginning of the month when a borrowing need is identfied and repayments are made at the end of a month when the company has excess cash(i.e. this company does not take out additional loans to pay curtent loans.) - Also, interest associated with a loan is only paid at the time when that ioan is paid (l.e. a loan is only paid if there is enough cash to pay off the whole loan, any interest associated with it, and the company still has enough cash left over to meet its requirement for the minimum cash batance.) Interest expense if it exiat, however, should be reported in the income statement even when it has not been paid off (please note this inttruction is difterent from what was discussed in the video so take note)
