Resit Corporation is getting ready to prepare its budgets for April: 1. Forecasted sales in units for March, April and May are as follows: March 3,000 units, April 5,000 units and May 6,000 units. The company's selling price is $12 per unit. 60% of a month's sales are collected in the same month, 30% in the following month and the remaining in the second month following the sales. 2. The company purchases its merchandise inventory monthly. Monthly purchases in units are equal to the applicable month's sales in units. Therefore, the company carries zero inventory. Purchase price per unit (also cost of goods sold per unit) is 50% of sales price per unit. 60% of the purchases are paid in the same month and remaining balance is paid in the month following the month of the purchase. 3. The company has an investment in Treasury bonds of $60,000 from which it earns monthly interest of $2,000. The T-bills will mature on April 30 and at this date, principal amount plus accrued interest for 4 months will be received in full. 4. Beginning cash is expected to be $6,000 on April 1 . 5. The company owns shares of Green Company. Green Company declared and paid $20,000 as dividends in April. 6. The company has a monthly salaries expense of $40,000. The salaries of each month are paid to the employees in the same month as incurred. 7. The company will move to a new office on March 1. A rent security deposit of $10,000, and first-month's rent of $2,000 will be paid in March. In addition, on April 1, \$8,000 will be paid as for the months of April, May, June, and July. 8. On April 1, the company will pay $27,000 cash in advance for an 18 -month insurance policy covering the fixed assets of the company. 9. All other cash operating expenses are estimated as $20,000 per month, to be paid in the same month as incurred. 10. On April 1, the company will sell its old equipment for $30,000 cash (old equipment will have a net book value of $20,000 at that date). The company will buy a new equipment for $36,000 cash on April 1 . The company uses the straight-line method of depreciation with a useful life of 8 years. 11. The company has a bank loan outstanding which was taken in 2020 , to start the business. Principal payments of $10,000 and interest payments of $1,000 are paid every month. Required: Prepare the following budgets for APRIL: a) Sales budget b) Schedule of expected cash collections from sales c) Inventory purchases budget d) Schedule of expected cash payments for inventory purchases e) Cash budget PRESENT VALUE TABLES Table 1: Discount rate (r)