Prepare Master Budget Flying Fish Kite Company, a small Woy Woy, Australia, firm that sells kiles on the Web, wants a mater budget for the 3 moaths begianing January 1, 20X2. It desires an eading minimserm cash balance of $15,000 each month. Sales are forecasted at an average wbolesale selling price of $14 per kite. Merchandive cests average 55 per Lite. All sales ane os credit, payable within 30 days, hut experience has shiwn that 49% of curnent sales are collected in the current mosoeh, 10% in the next motth, and 30% in the monch thereafter, Bad dehts are negligible. Is January. Flying Fish Kite is beginaing just-is-time (JIT) deliveries from sappliers, which fosuns that parchases will equal expested sales, On Janasy 1. purchases will eease until iaventory decreases to $22,000, after which time perchaves will equal vales. Parchaies during any given month are paid in full during the following month. Monthly operating expenser ase as follows: Cish dividends of $2,400 are to be paid quarterly, beginning January 15, and are declared on the fificent of the previcus rooth, All eperating expenses are paid as incerred, eccept imaraace, thepreciation, and rent. Reat of 5500 is paid it the begianing of euch month, and the additional 5% of sales is setiled quarterly on the ienth of the moeth following the end of the quarter. The nexi rent settlement date is January 10. The company plans to buy some new fixtures for $4,000 cash in Masch. Money can be boerrwed and repaid in maltiples of 52.000. Managemert wants to minimize boneswing and repsy rapidly. Simple intenest of 9% per anmum is consputed novatily but paid when the priecipal is repuil. Assume thar borrowing occues at the teginning, and rfpaymeats at the end, of the months in question. Conipute interest to the nearese dotlar. 314 PAAT 2 - ACCOUNTING FOR PLANNING AND CONTRDL 1. Prepare a master budget including a badgeted income stateneent, bolance sheet, cash bodget, and supporting sebsedules for the months Jaawary-March 202. 2. Explain why there is a need for a bank loan and what operating aources provide the cait for the repaymest of the bank loan