Sun and Clear, Inc. is a small wholesale distributor of consumer goods. The company generates a gross margin shown in the blue table. The percent of cash sales is shown in the blue table; the remainder is sold on account and is collected one month later. Accounts receivable on June 30 2022 are the result of June's credit sales to be collected the next month. Budgeted sales for the period are: As of July 1st, the company plans for each month's ending inventory to be the blue table percentage of the following month's budgeted cost of goods sold. Inventory cash purchases are also shown in the blue table; the rest is paid for in the following month. The accounts payable on June 30 are the result of June's purchases of inventory. All monthly expenses were paid monthly. Monthly expenses included: commissions, \\$8,500; rent, \\$2,000; other expenses (excluding depreciation), are reflected in the blue able as a percent of sales. Depreciation is \\( \\$ 1,200 \\) for the quarter and includes depreciation on new assets acquired during the quarter. The assets acquired were all cash purchases, equipment of \\( \\$ 3,000 \\) in July and \\( \\$ 2,500 \\) in August. The company wishes to maintain a minimum cash balance of \\( \\$ 2,000 \\) at the end of each month. The company has excellent relationship with a local credit union that allows the company to borrow in increments of \\( \\$ 1,000 \\) at the beginning of each month, up to a total line of credit loan balance of \\( \\$ 30,000 \\). The interest rate on these loans is \2.5 per month, and interest is not compounded. The company, when able, repays the loan plus accumulated interest at the end of the quarter. Additional information: Required: Using the data above, for the 3rd quarter ending Sept 30 2022, prepare the following monthly \\& quarter: a. The schedule of the expected Cash Collections b. The merchandise Purchases budget: c. The schedule of expected cash disbursements - Merchandise purchases. d. The schedule of expected cash disbursement -Selling and Administrative expenses e. The Cash budget: f. An absorption costing Income Statement, for the quarter ending Sept 302022. g. A Balance Sheet as of Sept 302022 * Provide a short write up (2-3 paragraphs) of the cashflow situation at this company after you completed the budgets. What are your concerns and what would you recommend to management? Sun and Clear, Inc. is a small wholesale distributor of consumer goods. The company generates a gross margin shown in the blue table. The percent of cash sales is shown in the blue table; the remainder is sold on account and is collected one month later. Accounts receivable on June 30 2022 are the result of June's credit sales to be collected the next month. Budgeted sales for the period are: As of July 1st, the company plans for each month's ending inventory to be the blue table percentage of the following month's budgeted cost of goods sold. Inventory cash purchases are also shown in the blue table; the rest is paid for in the following month. The accounts payable on June 30 are the result of June's purchases of inventory. All monthly expenses were paid monthly. Monthly expenses included: commissions, \\$8,500; rent, \\$2,000; other expenses (excluding depreciation), are reflected in the blue able as a percent of sales. Depreciation is \\( \\$ 1,200 \\) for the quarter and includes depreciation on new assets acquired during the quarter. The assets acquired were all cash purchases, equipment of \\( \\$ 3,000 \\) in July and \\( \\$ 2,500 \\) in August. The company wishes to maintain a minimum cash balance of \\( \\$ 2,000 \\) at the end of each month. The company has excellent relationship with a local credit union that allows the company to borrow in increments of \\( \\$ 1,000 \\) at the beginning of each month, up to a total line of credit loan balance of \\( \\$ 30,000 \\). The interest rate on these loans is \2.5 per month, and interest is not compounded. The company, when able, repays the loan plus accumulated interest at the end of the quarter. Additional information: Required: Using the data above, for the 3rd quarter ending Sept 30 2022, prepare the following monthly \\& quarter: a. The schedule of the expected Cash Collections b. The merchandise Purchases budget: c. The schedule of expected cash disbursements - Merchandise purchases. d. The schedule of expected cash disbursement -Selling and Administrative expenses e. The Cash budget: f. An absorption costing Income Statement, for the quarter ending Sept 302022. g. A Balance Sheet as of Sept 302022 * Provide a short write up (2-3 paragraphs) of the cashflow situation at this company after you completed the budgets. What are your concerns and what would you recommend to management