please show work so I can learn how to do it as well.

Part la. This part requires you to create a sales budgel by month and the total for the 2nd quarter. Use formulas wherever possible. Part Ib. This part requires you to creale a schedule for budgeled cash collections from sales and accounts receivable. Use formulas wherever possible and link information Irom Part la Partic. This part requires you to create a purchases budget in units and dollars. Note: this company is a merchandiser, 30 no production budget is needed. Instead, a purchases budget will be used (since the company will be buying inventory instead of manufacturing it). Obviously, you will not need any direct materials, direct laborte. budgets. Use formulas wherever possible. Link information wherever possible. Part Id. Ilus purl requires you to create a cash disbursements budget for purchases by month and the total for the quarter. Use formulas wherever possible and link information Part 2. This part requires you to create a cash budget by month and the total for the quarter. Use Cormulas wherever possible and litik information. Also use formulas when you calculate nutubers thal aren't given, like interest expense. Use formulas whenever you calculate numbers (i.c. interest expense). Part 3. This part requires you to creale a budgeted income statement from the previous parts and additional information given in the case. Use fomulas wherever possible, including any derived numbers (i.c. COGS, commissions). Use formulas whenever you calculate numbers. Part 4. Ilus parl requires you to create a budgeted balance sheet from the previous parts and additional information given in the case. Use fomulas wherever possible, including any derived numbers (i.c. unexpired insurance, fixed assets, nct of depreciation, retained earings, dividends payable, inventory). Use formulas whenever you calculate butubers. Master Budget with Supporting Schedules You have just been hired as a management traince by Cravat Sales Company, a nationwide distributor of a designer's silk lies. The company has an exclusive franchise on the distribution of the lies, and sales have grown so rapidly over the last few years that it has become necessary to add new members to the management team. You have been given responsibility for all planning and budgeting. Your first assignment is to prepare a master budget for the next three months, starting April 1. You are anxious to make a favorable impression on the president and have assembled the information below. The company desires a minimum ending cash balance cach month of S12,000. The ties are sold to retailers for $8.10 each. Recent and forecasted sales in units are as follows: January (actual) February (actual) March (actual) April May 20,000 June 24,000 July 28,000 August 33.000 September 41.000 65.000 40.000 36.000 32.000 The large builchap in sales before and during Junc is due to Father's Day. Ending inventories are supposed to equal 75% of the next month's sales in units. The lies cost the company 54.85 each Purchases are paid for as follows: 50% in the month of purchase and the remaining 50% in the following month. All sales are on credil. with no discount, and payable within 15 days. The company bus Cound, bowever, that only 30% of a month's sales are collected by itontb-end. Au additional 60% is collected in the following month, and the remaining 10% is collected in the second month following sale. Bad debts have been negligible. The company's monthly selling and administrative expenses are given below: Si per tie Variable: Sales Coutussions Fixed: Wages and salaries Utilities Insurance Depreciation Miscellaneous S 22.000 S 14.000 S 1.200 S 1.500 S 3.000 All selling and administrative expenses are paid during the month, in cash, with the exception of depreciation and insurance expired. Land will be purchased during May for $30,000 cash. The company declares dividends of $12.000 cach quarter. payable in the first mouth of the following quarter. The company's balance sheet at March 31 is given below: Assels 14.000 Cash Accounts receivable (S19.440 February sales: SI58.760 March sales) Inventory (24,750 units) Prepaid insurance Fixed assets, bel of depreciation 178.200 120,037.50 14,400 172.700 Total assets $499.337.50 Liabilities and Stockholders' Equity Accounts payable $ 76,993.75 Dividends payable 12,000 Capital slock 300.000 Retained camings 110,343.75 Total liabilities and stockholders equity $ 499.337.50 The company has an agreement with a bank that allows it to borrow in increments of $1,000 at the beginning of each month, up to a total loan balance of $300,000. The interest rate on these locus is 1% per mouth, and for simplicily, we will assume that interest is not compounded. Al 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 SI2.000 in cash. CRAVAT SALES COMPANY Cash Budget For the Three Months Ending June 30 April May June Quarter 45 47 50 Cash balance beginning Add receipts from customers Tatal cash wilable Les disbursements: Purchase af inventory Sales Cissions Salaries and weiges Utilities Miscelaneous Dividends paid Land purchases Tatal disbursements Excess deficiency) of receipts over disbursements Financing Borrowings Repayments Interest Talal financing Cash balance, ording 6 12 68 14 CRAVAT SALES COMPANY Budgeted Income Statement For the Three Months Ended June 30 73 Sales in units Sales Variable expenses: Cost of goods sold Currians Contribution margin Fixed pers: Salaries and wages Utilities Insurance expired Deprecatan Milanes Net operating income Les interest expense Net income 36 CRAVAT SALES COMPANY Budgeted Balance Sheet June 30 Assets Cash Accounts receivable Inventory Unexpired insurance Fixed assets, net af depreciation Talal assels 100 101 102 104 105 Liabilities and Stockholders' Equity Accounts payable, purchases Dividends payable Loans payabile, bank Capital sex, no par Retained earrings Tatal liabilities and excuity L 106 107 108 110 Accounts receivable at June 30: May sales June Sales Total 112 113 117 118 Retained einings at June 30: Balance, March 31 Add net income Total Less dividends declared Balance, June 30 120 122 CRAVAT SALES COMPANY Ova w Minimum ending cash balance Selling price (per unit) $ $ 12,000 8.10 Recent and forecast sales (in units): January (actual) February (actual) March (actual) April May June July August September 20,000 24,000 28,000 33,000 41,000 65,000 40,000 36,000 32,000 Desired ending inventories (percentage of next month's sales) Cost of ties (per unit) Purchases paid as follows: In month of purchase In following month Collection on sales: Sales collected current month Sales collected following month Sales collected 2nd month following Variable monthly expenses: Sales commissions (per tie) Fixed monthly expenses: Wages and salaries Utilities $ $ Insurance Depreciation Miscellaneous 22,000 14,000 1,200 1,500 3,000 IN Land purchased in May Dividends declared each quarter $ $ 30,000 12,000 $ 14,000 $ Balance sheet at March 31: Assets Cash Accounts receivable February sales March sales Inventory (24,750 units) Prepaid insurance Fixed assets, net of depreciation Total assets 19,440 158,760 178,200 120,037.50 14,400 172,700 $ 499,337.50 56 lities and Stockholders' Equity Accounts payable Dividends payable Capital stock Retained earnings Total liabilities and stockholders' equity $ 76,993.75 12,000 300,000 110,343.75 $ 499,337.50 1,000 $300,000 Agreement with Bank: Borrowing increments Maximum borrowing amount Interest rate per month Repayment increments Total of interest paid each quarter Required minimum cash balance 1% $ 1,000 100% 12,000 $