The key information and instructions related to the project is listod below. The following data redate to the operations of Shitow Company, a wholesale distributor of consumer aoods. a. The gross margin is 25% of sales: b. Actual and budgeted sales data. c. Sales are 60% for cash and 40% on credit Credit sales are collected in the month following sale The accounts recevable at March 31 are a result of March credit sales d Each monith's ending invenfory stiould oqual 80% of tho tollowing montt's budgeted cost of goods sold. e. One half of a month's inventory purchases is paid for in the month of purchuse, the other half is pad for in the following month. The accounts payable at March 31 are the result of March purchases of inventory f. Monthly expenses are as follows cornmissions, 12% of sales, rent, $2,500 per month other expenses (excluding depreciation), 6% of sales Assume that these expensos are paid monthly Depreciation is $900 per month (includes depreciation on new assots) g. Equipment costing 51,500 will be purchased for cash in April h. Management would like to mantain a minimum cash balance of at lasst $4,000 at the end of each month. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month, up to a fotal loan balance of $20,000. The interest rate on these foans is 1% per month and for simplicity we will assume that interest is not compounded the company would, as tar as it is able, repay the ioan ptus accumulated interest at the end of the quarter Using the data provided above, use the Excel Template provided to prepare the following budget schedules 1. Sales Budget (Merely enter the sales data provided) 2. Schedule of Expected Cash Collections 3. Merchandise Purchases Budget 4. Schedule of Expected Cash Disbursements - Merchandise Purchases 5. Schedule of Expected Cash Disbursements - Selling and Administrative Expenses 6. Cash Budget Please note that Excel formulas or functions should be used throughout the budget wherever possible, instoad of entering numbers into each cell Managerial Accounting - Course Project \begin{tabular}{|l|l|l|l|l|} \hline \multicolumn{5}{|c|}{ Budgeted Sales } \\ \hline March & April & July \\ \hline & & & & \\ \hline \end{tabular} Schedule of Expected Cash Collections \begin{tabular}{|c|c|c|c|c|c|} \hline & & April & May & June & Quarter \\ \hline Cash Sales & $ & 36,000 & & & \\ \hline Credit Sales & & 20,000 & & & \\ \hline Total Collections & $ & 56,000 & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Merchandise Purchases Budget } \\ \hline & April & May & June & Quarter \\ \hline Budgeted Cost of Goods Sold & $45,000 & & & \\ \hline add: Desired Ending Inventory & 43,200 & & & \\ \hline Total Needs & 88,200 & & & \\ \hline less: Beginning Inventory & 36,000 & & & \\ \hline Required Purchases & 52,200 & & & \\ \hline \end{tabular} Schedule of Expected Cash Disbursements - Merchandise Purchaes \begin{tabular}{|c|c|c|c|c|} \hline & April & & Jndis & urchaes \\ \hline March Purchases & & May & June & Quarter \\ \hline April Purchases & 21,750 & & & \$ 21,750 \\ \hline \multirow{2}{*}{\multicolumn{5}{|c|}{\begin{tabular}{l} May Purchases \\ June Purchases \end{tabular}}} \\ \hline \multirow{2}{*}{\multicolumn{5}{|c|}{\begin{tabular}{l} June Purchases \\ Total Disbursements \end{tabular}}} \\ \hline & & & & \\ \hline & \$ 47,850 & & & \\ \hline \end{tabular} Schedule of Expected Cash Disbursements - Selling \& Administrative Schedule of Expected Cash Disbursements - Selling \& Administrative \begin{tabular}{|c|c|c|c|c|c|} \hline \multirow[b]{2}{*}{ Commissions } & \multicolumn{2}{|c|}{ April } & \multirow[t]{2}{*}{ May } & \multirow[t]{2}{*}{ June } & \multirow[t]{2}{*}{ Quarter } \\ \hline & $ & 7,200 & & & \\ \hline Rent & & 2,500 & & & \\ \hline Other Expenses & & 3,600 & & & \\ \hline Total Disbursements & $ & 13,300 & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Cash Budget } \\ \hline & April & May & June & Quarter \\ \hline Cash Balance Beginning & 8,000 & & & \\ \hline Add: Cash Collections & 56,000 & & & \\ \hline Total Cash Available & 64,000 & & & \\ \hline \multicolumn{5}{|l|}{\begin{tabular}{l} Less Cash Disbursements \\ For Inventory \end{tabular}} \\ \hline For Inventory & 47,850 & & & \\ \hline For Expenses & 13,300 & & & \\ \hline For Equipment & 1,500 & & & \\ \hline Total Cash Disbursements & 62,650 & & & \\ \hline Excess (deficiency) of Cash & 1,350 & & & \\ \hline \multicolumn{5}{|l|}{\begin{tabular}{l} Borrowing \\ Repayments \end{tabular}} \\ \hline \multicolumn{5}{|l|}{\begin{tabular}{l} Repayments \\ Interest Paid \end{tabular}} \\ \hline Interest paid & & & & z \\ \hline Ending Cash Balance & & & & \\ \hline \end{tabular}