Summer 2022 Group Project I Requirements: Prepare a master budget for each of the first three months of 2023; include the following component budgets (show supporting calculations as needed directly behind that budget, and round amounts to the nearest dollar): 1.) Monthly sales budgets (showing both budgeted unit sales and dollar sales). 2.) Monthly merchandise purchases budgets. 3.) Monthly selling expense budgets. 4.) Monthly general and administrative expense budgets. 5.) Monthly capital expenditures budgets. 6.) Monthly cash budgets. 7.) Budgeted income statement for the entire first quarter (not for each month). 8.) Budgeted balance sheet as of March 31, 2023 9.) Prepare a written analysis summarizing your findings. Please include: i.) Financial ratios in your discussion of the company's financial position. ii.) What accounting recommendations do you have for the new company? iii.) What business recommendations do you have to help the new company? iv.) What did you learn from preparing a Master Budget? Do you find this to be an easy or challenging project? Why? Gather each member's thoughts and report separately. v.) Do you feel you could prepare a master budget for a company on your own? Gather each member's thoughts and report them separately, not as a group consensus. Reports should be neatly compiled in the above order and include a cover page with all team member names. Grading Criteria Spelling, grammar, and formatting errors reduce the grade by one point each. Projects can initially be completed in Google Docs, Microsoft Excel, Word, or other word or spreadsheet software Regardless of how your project was initially created, each of the above items shall then be posted as a page in Canvas within your group in the exact order as above. This group project is worth 130 points of your overall grade. Participation by all members is absolutely required. Your grade on these projects will be composed of a group grade (determined by your instructor) and an individual grade (determined by your group members). How the assignment is divided up is up to each group, however each student must present a portion on the recorded presentation. Each group member should also present at least one item from requirement number 9 above. The entire recorded presentation must be completed using Pronto only. You will be assessed on your collaboration so it must be done using Pronto also. On the due date, you will submit a confidential peer evaluation form for which you will grade each of your team members. You will also be posting your progress, etc... in the Discussion by your respective Group. You may not change groups. Late or incomplete projects will not be accepted. You are welcome to complete and turn in early. Due: Wednesday, August 17 at 11:59 p.m.Near the end of 2022, the management of Baliixter Boxing Co., a merchandising company, prepared the following estimated balance sheet for December 31, 2022. mantras some 00mm Deeernher 31, 202-2 Assets Liabilities and Equity IICash $32,000 Accounts payable $350,000 Accounts receivable 520,000 Bank loan payable 16,000 Inventory it"s'iigib\" \"1\"\" 4mm Total current assets 652,000 Total liabilities $457,000 Equipment $545,000 Common stock 422,000 gmd 68,125 nests Retained earnings 204,375 Total stockholders equity 626,825 Total assets $1,133,325 Total liabilities and equity $1,133,875 To prepare a master budget for January, February, and March of 2023, management gathers the following information. a. Ballixter Boxing's single product is purchased for $20 per unit and resold for $55 per unit. The expected inventory level of 5,000 units on Deoember 31, 2022, is more than management's desired level for 2023, which is 20% of the next month's expected sales (in units). Expected sales are: January, 2,500 units; February, 9,000 units; March, 11,000 units; and April, 10,000 units. h. lash sales and credit sales represent 25% and 25%, reapectively, of total sales. Of the credit sales, 68% is collected in the rst month after the month of sale and 32% in the second month after the month of sale. For the December 3 l. 2022. accounts receivable balance, $125,000 is collected in January and the remaining $395,000 is eoilected in Febmary. c. Merchandise purchases are paid for as follows: 20% in the rst month after the month of purchase and 80% in the second month after the month of purchase. For the December 31, 2022, accounts payable balance, $35,000 is paid in January and the remaining $265,000 is paid in February. :1. Sales commissions equal to 20% of sales are paid each month. Sales salaries {excluding commissions) are 596,000 per year. e. General and administrative salaries are $156,000 per year. Maintenance expense equais $2,100 per month and is paid in cash. 1'. Equipment reported in the December 31, 2022. balance sheet was purchased in January 2022. It is being depreciated over eight years under the straight-line method with no salvage value. The following amounts for new equipment pin-chases are planned in the coming quarter: January, $35,000; February, $92,000; and March, $29,000. This equipment will be depreciated under the straight-line method over eight years with no salvage value. A full month's depreciation is taken for the month in which equipment is purchased. g. The company plans to acquire land at the end of March at a cost of $130,000, which will be paid with cash on the last day of the month. h. Ballixter Boxing has a working arrangement with its bank to obtain additional loans as needed. The interest rate is 12% per year, and interest is paid at each month-end based on the beginning balance. Partial or full payments on these loans can be made on the last day of the month. The company has agreed to maintain a minimum ending cash balanee of$23,365 in each month. i- The income tax rate for the company is 32%. Income taxes on the rst quarter's income will not be paid until April t5