- Prepare a purchases budget for each month of the second quarter ending June 30 , 2022. - Prepare a cash receipts schedule for each month of the second quarter ending June 30, 2022. Do not include borrowings. - Prepare a cash disbursements schedule for each month of the second quarter ending June 30, 2022. Do not include repayments of borrowings. - Prepare an overall cash budget for each month of the second quarter ending June 30, 2022. Include budgeted borrowings and repayments. - Prepare a pro forma income statement for each month of the second quarter ending June 30, 2022. TIMBERS DEPARTMENT STORE Balance Sheet March 31, 2022 Actual and forecasted sales for selected months in 2022 are as follows: Monthly operating expenses are as follows: Cash dividends of $15,000 are declared during the third month of each quarter and are paid during the first month of the following quarter. Operating expenses, except insurance and depreciation, are paid as incurred. The prepaid insurance is for five more months. Cost of goods sold is equal to 50 percent of sales. Ending inventories are sufficient for 120 percent of the next month's cost of goods sold. Purchases during any given month are paid in full during the following month. All sales are on account, with 50 percent collected during the month of sale, 40 percent during the next month, and 10 percent during the month thereafter. Cash Management Policy: Money can be borrowed and repaid in multiples of $1,000 at an interest rate of 12 percent per year. For budgeting purposes the company uses simple interest for all interest calculations. The company desires a minimum cash balance of $4,000 on the first of each month. At the time the principal is repaid, interest is paid on the portion of principal that is repaid. All borrowing is at the beginning of the month, and all repayment is at the end of the month. Money is never repaid at the end of the month it is borrowed. Any repayment of past borrowings can only occur if the monthly ending cash balance is greater than $10,000 (after partial or full repayment of past borrowing). With the above information you and your group can now prepare the second quarter budget for Timbers Department Store