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

1. A sales budget

2. A schedule of expected cash collections from sales

3. A merchandise purchases budget in units and in dollars

4. A schedule of expected cash disbursements for merchandise purchases

5. A cash budget

6. A budgeted income statement of the three-month period ending June 30

7. A budgeted balance sheet

Data Sheet Selling price per widget $ 18.00 All sales are made on account Balance Sheet at March 31st $ 88,000 Widgets sold (actual and budgeted): January (actual) February (actual) March (actual) April (budget) May (budget) 22,800 28,800 42,800 67,800 102,800 June (budget) July (budget) August (budget) September (budget) 52,800 32,800 30,800 27,800 Assets Cash Accounts receivable February sales $ March sales Inventory Prepaid insurance Property & equipment (net) Total assets 51,840 616,320 668,160 146,448 28,000 Ending Inventory 40% of widgets to be sold in the following month 1,090,000 $ 2,020,608 Cost per widget $ 5.40 All purchases are made on account Payments for merchandise (widgets) Month of purchase Following month 50% 50% Cash collections of sales on account Month of sale 20% Following month 70% Second month 10% Liabilities & Stockholders' Equity Accounts payable Dividends payable Common stock Retained earnings Total liabilities & stockholders' equity $ 114,000 25,500 1,080,000 801,108 $2,020,608 4% of sales Monthly operating expenses: Variable : Sales commissions Fixed: Advertising Rent Salaries Utilities Insurance Depreciation $ 340,000 $ 32,000 $ 134,000 $ 14,000 $ 4,400 (The insurance premium is paid on an annual basis, in November of each year.) $ 28,000 Planned equipment cash purchases: May June $ $ 23,000 54,000 Dividends declared per quarter (payable in the first month of the following quarter): $25,500 Minimum cash balance: $64,000 Borrowing increments: Interest rate per month: $1,000 1% simple interest All borrowing occurs at the beginning of the month as needed, Any month borrowed, as well as the interest due is paid back on the last day of the quarter. When repaying any amounts borrowed, remember you can not go below your minimum cash balance