Prepare sales budget, schedule of cash collections, merchandise purchase budget, schedule of cash disbursements and cash budget by month and for the quarter.

General Products Company is a retailer and sells variety of products. Actual sales and budgeted sales data in units for the month of Feb, March, April, May and June is given below. Feb 20,000 units Actual sales March 25,000 units Actual sales Budgeted Sales units (all on account) April 28,000 units; May 34,000units; June 40,000 units and for July 36,000 units Past experience indicates that the company collects cash from customers as shown below. 20% in the month of sales, 70% in the month following sales and 10% in the second month following sales. Sales price per unit is $10 General Products maintains end of month inventory that is equal to 10% of the following month's sales. Inventory at the end of March was 1,200 units. Purchase price per unit is $6. Merchandise Suppliers are paid 40% in the month of purchase, 60% in the month following the purchase. General Products had Accounts Payable of $159,500 for March purchases Monthly operating expenses (including depreciation of 3,000 per month) are $28,000. Company plans to purchase office equipment costing $102,560 in the month of May and will pay dividend of $43,540 to its shareholders in June. Cash Balance on March 31, was $3,500. Company maintains a minimum cash balance of $3,000 at the end of each month. An open line of credit is available with Company's Bank to make up any deficiency to maintain minimum cash balance. Borrowing from the bank at the beginning of the month and in multiples of $1,000. The interest rate on these borrowings is 1% per month and is not compounded. At the end of the quarter, the company will pay the bank all of the accrued interest on such borrowings and as much of the principal amount as possible while still retaining at least $3,000 in cash. Prepare Sales Budget, Schedule of cash collections, Merchandise Purchase Budget,Schedule of Cash Disbursements and Cash Budget by month and for the quarter