Please Show Me How To Solve Monthly operating expenses for the company are given below: March Sales : $$40,000$

April Budgeted Sales : $$65,000$

May Budgeted Sales : $$100,000$

June Budgeted Sales : $$50,000$

Variable:

Sales commissions $..............4\%$ of sales

Fixed:

Advertising $..................$ $$200,000$

Rent $...........................$ $$18,000$

Salarles $..................$ $ $$106,000$

Utilities $...................$ $$7,000$

Insurance $...................$ $$3,000$

Depreclation $....................$ $$14,000$

Insurance is paid on an annual basis, in November of each year.

The company plans to purchase $$16,000$ in new equipment during May and $$40,000$ in new

equipment during June; both purchases will be for cash. The company declares dividends of

$$15,000$ each quarter, payable in the first month of the following quarter.

The company's balance sheet as of March $31$ is given below:

The company maintains a minimum cash balance of $$50,000.$ All borrowing is done at the

beginning of a month; any repayments are made at the end of a month.

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 $1\%$ 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

$($in increments of $$1,000),$ while still retaining at least $$50,000$ in cash.

Required:

Prepare a master budget for the three$-$month period ending June $30.$ Include the following detailed

schedules:

a$.$ A sales budget, by month and in total. $5$ redule

b$.$ A schedule of expected cash collections, by month and in total. Son

c$.$ A merchandise purchases budget in units and in dollars. Show the budget by month and

in total. $5$ oho dove?

d$)$ A schedule of expected cash disbursements for merchandise purchases, by month and in

total.

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.$