| Sterling plans to purchase land for $25,000 cash in June. The company also declares dividends of $12,000 per quarter. The dividend is declared in the last month of the quarter and paid in the first month of the following quarter. At the end of each quarter, Sterling makes a tax payment equal to 20% of budgeted income before tax. For purposes of this project, you may assume that the payment is debited to income tax expense. At the beginning of the year, Sterling borrowed $150,000 on a five-year 12% note payable with interest to be paid annually at December 31. The division's balance sheet at March 31 is as follows: STERLING TIES BALANCE SHEET At March 31 ASSETS Cash Accounts receivable Inventory Prepaid insurance Property, plant and equipment, net $ 44,000 229,500 157,500 14,400 322,700 Total Assets $768.100 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable Dividends payable Interest payable Note payable Common stock, no par Retained earnings $ 85,750 12,000 4,500 150,000 300,000 215,850 Total Liabilities and Stockholders' Equity $768.100 1) The balance sheet information provided in the project data has been entered on a spreadsheet in your workbook. Prepare a comparative budgeted balance sheet at June 30 next to the first quarter balance sheet. If you cannot get your second quarter balance sheet to balance, enter the amount necessary to get it to balance as a separate line item and label this amount "plug. 2) At the bottom of your worksheet, answer the questions below. Round your answers to the nearest whole unit, dollar or one percent as necessary. a. What is the budgeted ROI for the quarter? b. If Menswear, International has established a minimum required rate of return of 18% for all divisions, what is budgeted residual income for the quarter? C. If the division vice president has set a target ROI of 25% for the division, how many units will the company have to sell for the quarter