Required:

Prepare a master budget for the three-month period ending June 30. Include the following detailed budgets:
1.

a.	A sales budget by month and in total.

b.	A schedule of expected cash collections from sales, by month and in total.

c.	A merchandise purchases budget in units and in dollars. Show the budget by month and in total.

d.	A schedule of expected cash disbursements for merchandise purchases, by month and in total.

2.	A cash budget. Show the budget by month and in total.(Round your intermediate calculations and final answers to the nearest whole dollar. Also, round down your interest calculations to the next whole dollar amount.Cash deficiency, repayments and interest should be indicated by a minus sign.)

3.	A budgeted income statement for the three-month period ending June 30. Use the variable costing approach.

4.	A budgeted balance sheet as of June 30.

January (actual) February (actual) March (actual) April May Variable: Sales commissions Fixed: Advertising Rent Wages and salaries Utilities Insurance Depreciation 30,250 45,100 59,400 88,000 125,400 June July August September 5% of sales $ $ $ $ $ $ 245,000 25,500 124,000 13,000 6,000 29,000 71,500 49,500 47,300 44,000 Assets Cash Accounts receivable ($41,500 February sales; $475,200 March sales) Inventory Prepaid insurance Fixed assets net of depreciation Total assets $ 97,900 $ 520,300 140,800 46,200 1,127,500 1,932,700 Liabilities and Shareholders' Equity Accounts payable Dividends payable Common shares Retained earnings Total liabilities and shareholders' equity $ $ 141,680 19,800 1,045,000 726,220 1,932,700 1.a. A slaes budget by month and in total Budgeted sales in units Selling price per unit Total sales $ April May June $10 - $ $10 - $ $10 - $ Quarter 0 $10 - 1.b. A schedule of expected cash collectionns from sales by month and in total: KNOCKOFFS UNLIMITED Schedule of Expected Cash Collections April May June Quarter February sales $45,100 $ 45,100 March sales 415,800 415,800 April sales May sales June sales Total cash collections $ 460,900 $ - $ - $ 460,900 1.c. A merchandise purchases budget in units and in dollars. Show the budget by month and in total. KNOCKOFFS UNLIMITED Merchandise Purchases Budget April May June Quarter Budgeted sales in units 0 0 0 0 Add: Budgeted ending inventory Total needs 0 Less: Beginning inventory Required unit purchases 0 0 0 0 Unit cost $4 $4 $4 $4 Required dollar purchases 1.d. A schedule of expected cash disbursements for merchandise pruchases, by month and in total. KNOCKOFFS UNLIMITED Schedule of Expected Cash Disbursements April May June Quarter March purchases $ April purchases May purchases June purchases Total cash disbursements $ - $ - $ - $ - Req. 2: A cash budget. Show the budget by month and in total. (Round your intermediate calculations and final answers to the nearest whole dollar. Also, round down your interest calculations to the next whole dollar amount. Cash deficiency, repayments and interest should be indicated by a minus sign.) KNOCKOFFS UNLIMITED Cash Budget For the Three Months Ending June 30 April Cash balance, beginning Add receipts from customers Total cash available Less disbursements: Purchase of inventory Advertising Rent Salaries and wages Sales commissions Utilities Dividends paid Equipment purchases Total disbursements Excess (deficiency) of receipts over disbursements Financing: Borrowings Repayments Interest Total financing Cash balance, ending - - - May June - - - - - - - - - Quarter 3. A budgeted income stateent for the three-month period ending June 30. Use the variable costing approch. KNOCKOFFS UNLIMITED Budgeted Income Statement For the Three Months Ended June 30 Sales revenue Variable expenses: Cost of goods sold Commissions Contribution margin Fixed expenses: Advertising Rent Wages and salaries Utilities Insurance Depreciation Operating income Less interest expense Income before tax Check figure: Cell D22: $235,577 Req. 4: A budgeted balance sheet as of June 30: KNOCKOFFS UNLIMITED Budgeted Balance Sheet 30-Jun Assets Cash Accounts receivable Inventory Prepaid insurance Fixed assets, net of depreciation Total assets $ - Liabilities and Shareholders' Equity Accounts payable, purchases Dividends payable Common shares Retained earnings Total liabilities and stockholders' equity $