The Sweetwater Candy Company is preparing its budget for next year and has asked you to prepare a cash budget for the first quarter (January-March) of next year. Information needed for the cash budget is listed below in the gray box. The requirements are further beiow in the green box. - Selling price for a single box of chocolates: $24 per unit 0 Budgeted total sales are: 40% cash sales 60% credit sales - Credit sales are coliected in cash as foiiows: 75% collected in the month following the sale 25% collected in the 2nd month following the sale - At December 31, the balance in Accounts Receivable is $19,620, which represents the uncoilected portions of the November and December sales. November total sales 850 units December total sales 1150 units - Budgeted sales for the next four months follow: January February March Sales in units 1,350 1,700 1,600 c The company desires merchandise inventory equal to 30% of the next month's sales in units. - The December 31 balance of merchandise inventory is 405 units, and the cost to purchase one box of chocoiates is $10 per unit. - Inventory purchases are paid in cash as foilows: 70% paid in the month of purchase 30% paid in the month following purchase - At December 31, the balance of Accounts Payable is $3,900, which represents the unpaid portion of December's purchases. - Operating expenses that require payment are paid in the month incurred. Operating expenses include: Sales commissions are 10% of sales. Shipping is 3% of sales. Office salaries are $4,500 per month. Rent is $7,000 per month. Depreciation expense is $5,250 per month. - In March, management expects to sell office equipment that originally cost $11,000 at a gain of $1,000. Accumulated depreciation on this equipment at the time of sale will be $6,000. The equipment will be sold for cash. - In March, management plans to either overhaul its aid delivery truck or purchase a new truck. Based on the decision you made when you completed the capital budgeting analysis, include the cash disbursement for the truck in March. 0 A minimum cash balance of 5 117000 . is required, and the cash balance at December 31 is $15,000. 0 Loans are obtained at the end ofa month in which a cash shortage occurs. - Interest is 10% annually, based on the loan baiance at the beginning of the month, and must be paid each month. If an excess of cash exists, loan repayments are made at the end of the month. At December 31, the loan balance is 5600 April 1,550 Required: (A) Prepare the company's cash budget for each of the months of January, February, and March that includes information on the loan balance. Show the ending loan balance at December 31. MB} Show supple.\" entary schedule: for cash receipts from customers, purchases, and cash disbursements for purchases