The small appliance division of Ontario Products Company Ltd, an electrical retail chain, had the following budgeted income statement for December 2008: $720.000 432000 1288.000 Sale (8,000 units) cast of goods sold Cross margin Operating costs Rent expense. Insu Expense. Amort expense Salaries ensed Bad debt expense Interest expense on funds borrowed by the division Total operating expenses Net operating income Disregard income tax in this question $ 30,000 13,000 15,000 100.000 3.000 1.000 152.000 $136,000 Other information Actual and budgeted sales were (no change in selling price is expected): October 2008 $562,500 November 2008 $630000 January 2009 $450,000 February 2009 $562.500 2. Company policy is to always maintain Merchandise Inventory equal to 5.000 units plus percent of the following month's budgeted sales (units). 3. The company expects the following results from sales and collections of accounts receivable spent of all sales are for cash All credit sales are on terms of 21/10, 1/30 3d percent of all credit sales are collected in the month of the sake with percent of these qualifying for the discount En el all creditele tekst in the month after the sale na discounts fet sales are collected two months after the sale kinderella antiokestible , 4. The following information is available regarding cash payments: The insurance is an annual policy purchased on June 1, 2008, Interest is on a $160,000, 5 percent note payable dated September 16, 2008, with principal and interest due in three months from that date. The company had a cash balance of $40,000 on December 1, 2008, and always maintains a minimum cash balance of at least $25,000. All purchases are paid for in the month they are made. Required 1. Prepare a merchandise purchases budget for December 2008, to show the total payments for purchases in the month. 2. Prepare a cash budget for the month of December 2018 3. How many units would the company have to sell in Desember in order to maintain its de sired cash level? 4. How might the cash budget help managers of the division