The HomeSafe Corporation buys home security systems then resells them $300 per unit. The company budgeted the following sales for the upcoming months: March 490 units April 400 units May 510 units June 500 units All sales to customers are made on account and recent experience shows that 70% of sales are collected in the month of the sale and 30% in the month after the sale. The company purchases its product for $220 per unit and all purchases are paid in full in the month the purchase is made. The company maintains ending inventory equal to 20% of the next months unit sales and had 80 units in inventory on March 1st. The companys advertising is fixed at $1,500 per month, has other administrative costs of $12,500 per month and salaries of $20,000 per month; all selling and administrative expenses are paid in full each month. The company plans to give its salaried employees a one-time bonus of $5,000 (total) in May. To help offset what is otherwise expected to be a slow month, the company is planning a 10% off the price promotional sale during the month of April and the estimated impact in sales volume is already included in the April unit sales forecast. The company plans to purchase $30,000 of equipment in April and another $20,000 in May and will take out a $60,000 loan in April to help fund those purchases. The company had a cash balance of $35,000 and an accounts receivable balance of $22,000 on February 28th.

Questions:

1. What total dollar amount would appear on the company's sales budget for May?

2. What total dollar amount would appear on the company's purchases budget for April?

3. What amount of net income would appear on the company's income statement budget for March?

4. What amount of cash would appear in the company's balance sheet budget for April?

5. What amount of inventory would appear in the company's balance sheet budget for May?

6. What amount of accounts receivable would appear in the company's balance sheet budget for March?

7. What amount of equipment would appear in the company's balance sheet budget for May?

8. What amount of notes payable would appear in the company's balance sheet budget for May?

9. Given your results, briefly comment on the companys budgets and give two specific recommendations for the company.