Requited information TThe following infocmation applies to the questians dicpisyed beipwi] We really need to get this new materialthending equigment in operation just nter the new yeat begins. 1 thope we can finance it iargely with cash and marketabie securites, but if necersary we can get a short ferm loan down at Metrobank." This statement by Beth Davies-Lowry, presidest of fatercoastal Electronics. Company, concludod a meeting she had callod with the firmis top eranageer ent. Intorcoastal is a small, rapicliy growing wholesaler of consumer electronic products. The fimis main product lines are small kitchen appliances and power tools. Morcia. Wileax, latercoastal's General Manager of Macketing. has recently. completed a saies forecest, She beleves the company/s sales during the frat quarter of 20 ouf wit increase by 10 percent each month over the previous monti's sales. Then Wrices expects salest fo temain corstant for soveral months. Intercoostars projected balance sheet as of Dectmber 31 . 20 we. is as follows: Jack Hansoe, the assistant controlier. Is now peeparing a monthyy budgef for the first quarter of 20x. In the process, the following infoemation has been bccumulated. 1. Projected sales for December of 2010 are $500000. Cred saies typicaly are 70 percent of total sales. Interconstal's credit experience indicotes that 20 percent of the credit sases are coliected during the month of sale, and the remainder are collected during the following month. 2. Intercoastaf's cost of goods sold generally runs at 70 percent of sales. Inventory is purchased an account. and 30 percent of each montt's perchases are paid during the month of purchase. The remaindoe is paid during the following month. in order so have odequate stocks of inventory on hand, the firm attempts to have inventory at the end of each month equal to half of the next monthis projected cost of goods sold. 3. Hanson has estimated that Intercoastars other monthly expenses with be as follown: In addition, sales commissions run at the rate of 3 porceet of sales. 4. Intercoastai's president, Dovies-Lowny, hes indicated that the frm thould imest 5 to5,000 in an autornated imventory-hending system to control the movertert of inventory in the form's warehouse just alter the nerw year begins. These equipmert purchases will be fenanced primartly from the firm's cash and marketable securities. Howevet, Davies-Lowfy believes that lntercoattal needs to ketp a minimum eash balance of 540,000 . If recestery, the remainder of the equigment purchases wit be financed using short-term crecit from a locel bank. The minimum period for such a loan is three months kanson belleves hiortterm interest rates wit be 10 petcent per year ot the time of the eeplipment purchares. If a loan is mecessary. Davies-Lowry has decided it should be pald off by the cod of the frit qoater if possible. 5. Interconstals board of directors has indicated an intention to dectare and poy dridends of 575,000 on the last doy of each quartec. 6. The interest on any short-tem bortowing will be poid when the losn is repaid. Interest on lintercoastal's bonds is paid semiannualty on Januaty 31 and Juy 31 for the precedene sir month period. 7. Property taxes are paid semiannustly on Febriary 28 and Auguat 31 for tho preceding sice month 7 eriod. Required: Prepare Intercoastal Electronics Company's master budget for the first quarter of 201 by completing the following schedules and statements. 5. Complete the first three lines of the summary cash budget. Then do the analysis of short-term financing needs requirement 6 . Then finish requirement 5 . Required: Prepare intercoastal Electronics Company's master budget for the first quarter of 201 by completing the following schedules and statements. 6. Calculation of required short-term borrowing. Required: Prepare intercoastal Electronics Company's master budget for the first quarter of 20x1 by completing the following schedules and statements. . Prepare Intercoastal Electronics' budgeted income statement for the first quarter of 20xt. (lgnore income taxes.) Requited information TThe following infocmation applies to the questians dicpisyed beipwi] We really need to get this new materialthending equigment in operation just nter the new yeat begins. 1 thope we can finance it iargely with cash and marketabie securites, but if necersary we can get a short ferm loan down at Metrobank." This statement by Beth Davies-Lowry, presidest of fatercoastal Electronics. Company, concludod a meeting she had callod with the firmis top eranageer ent. Intorcoastal is a small, rapicliy growing wholesaler of consumer electronic products. The fimis main product lines are small kitchen appliances and power tools. Morcia. Wileax, latercoastal's General Manager of Macketing. has recently. completed a saies forecest, She beleves the company/s sales during the frat quarter of 20 ouf wit increase by 10 percent each month over the previous monti's sales. Then Wrices expects salest fo temain corstant for soveral months. Intercoostars projected balance sheet as of Dectmber 31 . 20 we. is as follows: Jack Hansoe, the assistant controlier. Is now peeparing a monthyy budgef for the first quarter of 20x. In the process, the following infoemation has been bccumulated. 1. Projected sales for December of 2010 are $500000. Cred saies typicaly are 70 percent of total sales. Interconstal's credit experience indicotes that 20 percent of the credit sases are coliected during the month of sale, and the remainder are collected during the following month. 2. Intercoastaf's cost of goods sold generally runs at 70 percent of sales. Inventory is purchased an account. and 30 percent of each montt's perchases are paid during the month of purchase. The remaindoe is paid during the following month. in order so have odequate stocks of inventory on hand, the firm attempts to have inventory at the end of each month equal to half of the next monthis projected cost of goods sold. 3. Hanson has estimated that Intercoastars other monthly expenses with be as follown: In addition, sales commissions run at the rate of 3 porceet of sales. 4. Intercoastai's president, Dovies-Lowny, hes indicated that the frm thould imest 5 to5,000 in an autornated imventory-hending system to control the movertert of inventory in the form's warehouse just alter the nerw year begins. These equipmert purchases will be fenanced primartly from the firm's cash and marketable securities. Howevet, Davies-Lowfy believes that lntercoattal needs to ketp a minimum eash balance of 540,000 . If recestery, the remainder of the equigment purchases wit be financed using short-term crecit from a locel bank. The minimum period for such a loan is three months kanson belleves hiortterm interest rates wit be 10 petcent per year ot the time of the eeplipment purchares. If a loan is mecessary. Davies-Lowry has decided it should be pald off by the cod of the frit qoater if possible. 5. Interconstals board of directors has indicated an intention to dectare and poy dridends of 575,000 on the last doy of each quartec. 6. The interest on any short-tem bortowing will be poid when the losn is repaid. Interest on lintercoastal's bonds is paid semiannualty on Januaty 31 and Juy 31 for the precedene sir month period. 7. Property taxes are paid semiannustly on Febriary 28 and Auguat 31 for tho preceding sice month 7 eriod. Required: Prepare Intercoastal Electronics Company's master budget for the first quarter of 201 by completing the following schedules and statements. 5. Complete the first three lines of the summary cash budget. Then do the analysis of short-term financing needs requirement 6 . Then finish requirement 5 . Required: Prepare intercoastal Electronics Company's master budget for the first quarter of 201 by completing the following schedules and statements. 6. Calculation of required short-term borrowing. Required: Prepare intercoastal Electronics Company's master budget for the first quarter of 20x1 by completing the following schedules and statements. . Prepare Intercoastal Electronics' budgeted income statement for the first quarter of 20xt. (lgnore income taxes.)