Prepare Master Budget Flying Fish Kite Company, a small Woy Woy, Australia, firm that sells kites on the Web, wants a master budget for the 3 months beginning January 1, 20X2. It desires an ending minimum cash balance of $15,000 each month. Sales are forecasted at an average wholesale selling price of $14 per kite. Merchandise costs average $5 per kite. All sales are on credit, payable within 30 days, but experience has shown that 40% of current sales are collected in the current month, 10% in the next month, and 50% in the month thereafter. Bad debts are negligible. In January, Flying Fish Kite is beginning just-in-time (J IT) deliveries from suppliers, which means that purchases will equal expected sales. On January 1, purchases will cease until inventory decreases to $22,000, after which time purchases will equal sales. Purchases during any given month are paid in full during the following month. Monthly operating expenses are as follows: Wages and salaries $80,000 Insurance expired 450 Depreciation 900 Miscellaneous 4,000 Rent $500/month + 5% of quarterly sales over $50,000 Monthly operating expenses are as follows: Wages and salaries $80,000 Insurance expired 450 Depreciation 900 Miscellaneous 4,000 Rent $500/month + 5% of quarterly sales over $50,000 Cash dividends of $2,400 are to be paid quarterly, beginning January 15, and are declared on the fteenth of the preVious month. All operating expenses are paid as incurred, except insurance, depreciation, and rent. Rent of $500 is paid at the beginning of each month, and the additional 5% of sales is settled quarterly on the tenth of the month following the end of the quarter. The next rent settlement date is January 10. The company plans to buy some new fixtures for $4,000 cash in March. Money can be borrowed and repaid in multiples of $2,000. Management wants to minimize borrowing and repay rapidly. Simple interest of 9% per annum is computed monthly but paid when the principal is repaid. Assume that borrowing occurs at the beginning, and repayments at the end, of the months in question. Compute interest to the nearest dollar. Assets as of December Liabilities & Owner's 31. 20X1 Equities as of December 31, 20X1 Cash $ 30,000 Accounts payable $151,500 (merchandise) Accounts receivable 180,600 Dividends payable 2,400 Inventory 153,000 Unexpired insurance 5,400 Rent payable 27,950 Fixed assets, net 62,000 Owners' equity 249,150 Total $431,000 Total $431,000 *November 30 inventory balance = $59,000 Recent and forecasted sales: October $280,000 December $161,000 February $413,000 April $280,000 November 168,000 January 378,000 March 273,000Recent and forecasted sales: 1. Prepare a master budget including a budgeted income statement, balance sheet, cash budget, and supporting schedules for the months J anuaryMarch 20X2