[The following information apples to the questions dispiaynd below.) -Wo really need to get this new moterial-handiling equipment in operation just after the new year begins. I hope we cen finonce it inggely weth cash and marketable securtiles, but if necessary we con get a short-terms loan down at Metrobank." This statement by Beth Davies-Lowry, president of linterconstal Electronics Company, concluded a meeting she had called with the firm's top management Intercoastal is a small, rapidly growing wholesaler of consumer electronic products. The firm's main product lines are smal kitcher appliances and power tools. Marcia Wilcox, Interconsta's General Mannger of Marketing, has recerity y. comploted a sales forecast. She beioves the company's sales during the firs quarter of 20x1 wall incroase by 10 percent eech month over the previous month's sales. Then Wicox expects sales to temain constant for several months Intercoostal's projected balance sheet as of December 3t, 20x0, is as follows: Jack Hanson, the assistant controllec, is now preparing a monthly budget for the first quarter of 20xt. in the process, the following Information has been accurtulated. 1. Projected sales foe December of 200 are $500,000. Credit sales typically are 70 percent of total sales. Intercosstal's credit experience indicates that 20 percent of the credt sales are collected during the month of sale, and the remainder are collected during the following month. 2. Intercoastal's cost of goods sold generally runs at 70 percent of sales. Inventory is purchased on account. and 30 percent of each month's purchases ate paid during the moeth of purchase. The remainder is poid during the following month. In order to hive adequate stochs of inventory on hand, the firm attempts 10 have inventory of the end of esch month equal to haif of the next montris projected cost of goocts sold. 3. Hansen thas estimated that intercosstal's other monthly expenses will be as follows: In aodition, sales commissions run ot the mate of 3 peicent of selet: 4. Intercoostar's president, Davies-Lowry, hos indicated thst the ferm should invest $105,000 in an sutomated inventory handeling system to cootrol the movement of invemory in the firm's warehouse just deter the oew yest begins. These equipment purchuses well be inanced primaily fiom the firm's cosh and marketable securries. However, Davies Lowit belioves that interceastal needs to keco a minimum capts belance of $40,000. If necessary. the remainder of the equipment purctinses wili be financed using short term crebt from a local bonk. The ininimum period for such a loon ls three months. Hansan beseves shodterm interest entes wil be 10 percent per yeat it the time of the equipment purchases if a loan is necessary. 5. intercoastaris board of directors has indicated an intention 90 deciere and pary dividends af 575 poe en the lang dey of each quarter. 6. The interest on ard shart term borrowng will be paid when the foen is ropald interest pn intercontury bontes is pe:d serriannunity on January 31 and Juiy 31 for the prececing six- thorth perlod 7. Property tawes are paid semianinially on Fobruary 28 and August 31 for the pieceding site ensant peciod. Required: following schedufes ind stoperents: Required: Prepare Intercoastal Electronics Company's master budget for the first quarter of 201 by completing the following schedules and statements. 2. Cash recelpts budget: Required: Prepare Intercoastal Electronics Company's master budget for the first quarter of 20x b by completing the following schedules and statements. 3. Purchases budget: Required: Prepare Intercoastal Electronics Company's master budget for the first quarter of 201 by completing the following schedules and statements. 4. Cash disbursements budget: (Round your inventory purchases up to the nearest whole dollar.)