Please solve question 2 and 3 please they are posted below.

Check my war! 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. l i i I The necklaces are sold to retailers for $10 each. Recent and forecast sales in units are as follows: January (actual) 29,996 June 68,666 February (actual) 44,696 July 48,666 March (actual) 57,666 August 46,969 April 83,966 September 43,969 May 117,609 m c 7, The large buildup in sales before and during May is due to Mother's Day. Ending inventories should be equal to\"40%pfthenext month's sales in units. . . The necklaces cost the company $4 each. Purchases are paid for as follows: 50% in the month of purchaSe'rrarrd the his the foltowin month All sales are on credit, with no discount, and payable within 15Edarys. The company hasrfo g 20% of a mcgmth's sales are collected by monthend. An additional 70% is collected in the followrngrmonth nd he collected in the second month following sale. Bad debts have been negligible. , _ , Check my w The company's monthly selling and administrative expenses are given below: Variable: Sales commissions 4% of sales Fixed: Advertising $254, 090 Rent 27 , 00 Wages and salaries 127, 600 Utilities 14, 200 Insurance 6, 600 Depreciation 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, 000 Accounts receivable ($44,000 February sales; $456, 000 March sales) 500, 000 Inventory 132, 800 Prepaid insurance 46, 200 Fixed assets, net of depreciation 1, 040, 000 Total assets 000 'IT8'T$ search OSaved Help Add receipts from customers Total cash available o 0 0 Less disbursements: Purchase of inventory . Advertising Rent Salaries and wages Sales commissions Utilities Dividends paid Equipment purchases Total disbursements O Excess (deficiency) of receipts over disbursements + 0 0 O 0 Financing: Borrowings Repayments Interest Total financing 0 0 0 Cash balance, ending $ o $ o $ o $ 0 Prev 1 of 1 Next > search O3. A budgeted income statement for the three-month period ending June 30. Use the variable costing approach. KNOCKOFFS UNLIMITED Budgeted Income Statement For the Three Months Ended June 30 Variable expenses: Fixed expenses: 0