ting manager of Yankee Departmental Store has a habit of preparing quarterly budgets. The following information is available for use in planning the second quarter budgets for 2016. YANKEE DEPARTMENTAL STORE Balance Sheet March 31, 2016 abilities an qui Accounts Cash Accounts receivable Inventory Prepaid insurance Fixtures Total assets $3,000 payable 25,000 Dividends 30,000 Rent payable $26,000 17,000 2,000 40,000 2,000 Stockholders 25,000 $85,000 Total liabilities $85,000 Actual and Forecasted sales for the select months are provided below: Month January February March Sales Revenue 60,000 50,000 40,000 50,000 60,000 70,000 90,000 80,000 April May June July August Monthly operating expenses are: Wages and salaries Depreciation Utilities Rent $25,000 100 1,000 2,000 Cash dividends of $17,000 are declared during the third month of each quarter and are paid during the first month of the following quarter. Operating expenses, except insurance, rent, and depreciation are paid as incurred. Rent is paid during the following month. The prepaid insurance is for five more months. Cost of goods sold is equal to 50 percent of sales. Ending inventories are sufficient for 120 percent of the next month's sales. Purchases during any given month are paid in full during the following month. All sales are on account, with 50 percent collected during the month of sale, 40 percent during the next month, and 10 percent during the month thereafter. Money can be borrowed and repaid in multiples of $1,000 at an interest rate of 12 percent per ycar. The company desires a minimum cash balance of $3,000 on the first of each month. At the time the principal is repaid, interest is paid on the portion of principal that is repaid. All borrowing is at the beginning of the month and all repayment is at the end of the month. Money is never repaid in the same month it is borrowed. Required-20 POINTS a Prepare a purchases budget for each month of the second quarter endin b. Prepare a cash receipts schedule for each month of the second quarter ending June 30, 2014. Do not include borrowings. Prepare a cash disbursements schedule for each month of the second quarter ending June 30, 2014. Do not include repayments of borrowings. c d Prepare a cash budget for cach month of the second quarter ending June 30, 2014. Include budgeted borrowings and repayments. e Prepare an income statement for each month of the second quarter ending June 30, 2014, s Prepare a budgeted balance sheet as of June 30, 2014