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Managerial Accounting - Spring 2021- Master Budget Case Analysis Assignment- Due: April 11 @ 11:59P - Upoaded to Blackboard~ In this assignment you are going to prepare elements of the master budget for Proctor Corporation using the following information. You should prepare individually the answers to the following. You should have a cover page and type your answers in excel or word. Cover Page: Your Name Date of Submission Course Name Course Number Professor Keegan Content: presented in Excel or Word This is a quantitative assignment NO critical analysis is necessary- Proctor Corporation, a merchandising company, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparation of the master budget for the third quarter.~ a. As of March 31 (the end of the prior quarter), the company's balance sheet showed the following account balances: Current quarter to be analyzed is 2nd Quarter (Apr. thru June)~ Cash $ 6,700 Accounts receivable 36,900 Inventory 11,130 Buildings and equipment (net)- 120,000 Accounts payable $ 32,8804 Common stock 100,000 Retained earnings 41,850% $174,730 $174,73056 Se b. Actual and budgeted sales are as follows: t March (actual) $61,500 April $79,500 May $88,800 June $89,400 July $58,100 c. Sales are 40% for cash and 60% on credit. All payments on credit sales are collected in the month following the sale. The accounts receivable at March 31 are a result of March credit sales.~ d. The company's gross margin percentage is 30% of sales. (In other words, COGs is 70% of sales.)~e. Each month's ending inventory should equal 20% of the following month's budgeted cost of goods sold. f. One-quarter of a month's inventory purchases is paid for in the month of purchase; the other three- quarters are paid for in the following month. The accounts payable at March 31 are the result of March purchases of inventory. g. Monthly expenses are as follows: commissions, $12,150; rent, $2,650; other expenses (excluding depreciation), 8% of sales. Assume that these expenses are paid monthly. Depreciation is $2,550 for the quarter and includes depreciation on new assets acquired during the quarter. h. Equipment will be acquired for cash: $3,830 in April and $8,100 in May.~ i. Management would like to maintain a minimum cash balance of $5,000 at the end of each month. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month (if needed to maintain the $5,000 cash balance), The company can borrow up to a total loan balance of $50,000. The interest rate on these loans is 1% per month, and for simplicity, we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter.~ Required: Using the data above, complete the following statements and schedules for the second quarter: 1. Schedule of expected cash collections: April May June Total Cash sales ~ $31,800.00- Credit sales 36,900.00 Total collections $68,700.00 2. a. Merchandise purchases budget: April May June Total Budgeted cost of goods $55,650.00* $62,160.00 Add desired ending inventory 12,432.00 t Total needs ~ 68,082.00 Less beginning inventory + 11,130.00 Required purchases $56,952.00 *$79,500.00 sales x 70% = $55,650.00.