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Tag Corporation is preparing its master budget for the quarter ending March 1 sangle des for $25 a wit. Budete sales are 40 cash and

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Tag Corporation is preparing its master budget for the quarter ending March 1 sangle des for $25 a wit. Budete sales are 40 cash and credit. All credit sales are collected in the month following thes Badetid sales for the next four months follow Es 1.000 March 1.600 April 1.400 Sales in units... ..... 1.200 At December 31, the balance in accounts receivable is $10,000, which represents the uncollected portion of December sales. The company desires merchandise inventory equal to 30of the next month's sales in units The December 31 halance of merchandise inventory is 340 units, and inventory cost is SI0 per unit, Forty percent of the purchases are paid in the mouth of purchase and we paid in the following month. At December 31, the balance of Accounts Payable is $8,000, which represents the unpaid portion of December's purchases Operating expenses are paid in the month incurred and consist of Sales commissions (10% of sales) Freight (24 of sales) Omice salaries (52,400 per month) Rent (54,800 per month) Depreciation expert is $4.000 per month. The income tax rate is 40%, and income taxes will be paid on April L. A minimum cash balance of $10,000 is required, and the cash balance at December 31 is S10 200. Lansare obtained at the end of a mouth in which a cash shortage occurs Interestis 19 per month, based on the beginning of the month loan balance, and must be paid cach month. If an excess of cash exists, loan repayments are made the end of the month At December 31, the low balance is SO. Prepare a master budget (round all dollar amounts to the nearest whole dollar) for each of the months of January February, and March that includes the Sales yet - Take of each its Merchandise purchases budget Tilfeldisbursements for merchandise purchases Table of cash disbursements for selling and administrative expenses - Cash boot, including information on the loan balance Bated income statement

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