please solve 2.,3,4

Knockoffs Unlimited, a nationwide distributor of low-cost imitation designer necklaces, has an exclusive franchise on the distribution of the necklaces, and sales have grown so rapidly over the past few years that it has become necessary to add new members to the management team. To date, the company's budgeting practices have been inferior, and at times the company has experienced a cash shortage. 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 eager to make a favourable impression on the president and have assembled the information below. The necklaces are sold to retailers for $10 each Recent and forecast sales in units are as follows: January (actual) February (actual) March (actual) April May 29,000 June 44,000 July 57,000 August 83,000 September 117,000 68,000 48,000 46,000 43,000 The large buildup in sales before and during May is due to Mother's Day, Ending inventories should be equal to 40% the next month's sales in units. The necklaces cost the company $4 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 credit with no discount, and payable within 15 days. The company has found, however, that only 20% of a month's sales are collected by month-end. An additional 70% 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 seling and administrative expenses are given below: Variable: Sales commissions Fixed: Advertising Rent Wages and salaries Utilities Insurance Depreciation 4% of sales $254,800 27,000 127,600 14,200 6,600 32,000 $ All selling and administrative expenses are paid during the month, in cash, with the exception of depreciation and Insurance. Insurance is paid on an annual basis, in November of each year. The company plans to purchase $23,200 in new equipment during May and $58,000 in new equipment during June; both purchases will be paid in cash. The company declares dividends of $18,600 each quarter, payable in the first month of the following quarter. The company's balance sheet at March 31 is given below: Assets Cash 92,800 Accounts receivable ($44,20 February sale $456,000 March sales) 500,000 Inventory 132,800 Prepaid insurance 46,200 Fixed assets, net of depreciation 1,840,000 Total assets $1,811,000 Liabilities and Shareholders' Equity Accounts payable $ 134,800 Dividends payable 18,600 Common Shares 980,000 Retained earnings 677,609 Total liabilities and shareholders' equity $1,811,000 The company wants a minimum ending cash balance each month of $50,000. All borrowing is done at the beginning of the month with any repayments made at the end of the month. The interest rate on these loans is 1% per month and must be paid at the end of each month based on the outstanding loan balance for that month, Required: 1. Prepare a master budget for the three-month period ending June 30. Include the following detailed budgets: a. A sales budget by month and in total. Aprin es budget Budgeted sales in units Selling price per unit Total Answer is complete and correct. May June 83,000 117.000 68,000 10S 10 15 10 $ 830,000 1,170,000 $ 600.000 $ Quarter 268,000 10 2.000.000 . A schedule of expected cash collections from sales, by month and in total February sales March sales April sales May sales June sales Total cash collections Answer is complete and correct. KNOCKOFFS UNLIMITED Schedule of Expected Cash Collections April June Quarter $ 44,000 $ 44,000 399,000 57.000 456,000 166,000 581,000 83,000 830,000 234,000 819,000 1,053,000 136,000 136,000 $ 609,000 $ 872.000 $ 1,038,000 $ 2,519,000 c. A merchandise purchases budget in units and in dollars. Show the budget by month and in total. May Budgeted sales in unita Add: Budgeted ending inventory Total needs Lase: Beginning inventory Required unit purchases Unit cost Required dollar purchases Answer is complete and correct. KNOCKOFFS UNLIMITED Merchandise Purchases Budget April June 83,000 117.000 68,000 46.800 27,200 19.200 129,800 144,200 87,200 33,200 46,800 27.200 96,600 97,400 60,000 $ $ 4 $ 4 S 386,400 $ 389,600 $ 240,000 Quarter 268.000 19,200 287,200 33.200 254,000 S 4 $ 1,016,000 2. A cash budget. Show the budget by month and in total, (Round your intermediate calculations and final answers to the nearest whole dollar. Also, round down your interest calculations to the next whole dollar amount. Cash deficiency, repayments and interest should be indicated by a minus sign. Do not leave any empty spaces; Input a 0 wherever it is required.) $ Quarter 92.000 2,519,000 2.611,000 Answer is not complete. KNOCKOFFS UNLIMITED Cash Budget For the Three Months Ending June 30 April May Juno Cash balance beginning 92,000S 50.400 R$ 50.600 Add receipts from customers 609,000 872,000 1,038,000 Total cash available 701,000 922,400 1.088,600 Less disbursements Purchase of inventory 328.000 388,000 314,800 Advertising 254,000 254,000 254,000 Rent 27,000 27,000 27,000 Salaries and wages 127,600 127,600 127,600 Sales commissions 33.200 46,800 27,200 Utilities 14.200 14,200 14,200 Dividends paid 18,600 Equipment purchases 23,200 58,000 Total disbursements 802,600 880,800 822,800 Excess (deficiency of receipts over disbursements (101,600) 41.600 265,800 Financing Borrowings 152,000 9,000 Repayments 161.000 Interest 4,740 Total financing 152,000 9,000 165,740 Cash balance, ending $ 50,400 $ 50,600 $ 431,540 1,030,800 762,000 81,000 382,800 107,200 42,600 18,600 81,200 2,506,200 104,800 8 161,000 161,000 4,740 326,740 $ 431,540 3. A budgeted Income statement for the three-month period ending June 30. Use the variable costing approach. Answer is complete but not entirely correct. KNOCKOFFS UNLIMITED Budgeted Income Statement For the Three Months Ended June 30 $ 2,680,000 $ 1,072,000 107,200 1,179,200 1,500,800 Sales revenue Variable expenses: Cost of goods sold Commissions Contribution margin Fixed expenses: Wages and salaries Utilities Insurance Advertising Rent Depreciation >> 382,800 42,600 19,800 762,000 81,000 96,000 Operating income Less interest expense 1,384,200 116,600 4,740 111,860 Net income $ 4. A budgeted balance sheet as of June 30. Answer is complete but not entirely correct. KNOCKOFFS UNLIMITED Budgeted Balance Sheet June 30 Assets Cash $ Accounts receivable Inventory Prepaid insurance 100.060 661,000 76,800 26,400 Fixed assets, net of depreciation 1,025,200 Total assets $ 1,889,460 Liabilities and Shareholders' Equity Accounts payable, purchases $ 120,000 Dividends payable 18,600 Common shares Retained earnings Total liabilities and shareholders' equity 980,000 770,860 X $ 1,889,460