+ Trident Company, a retailer of specialty wall-papers, prepares a monthly master budget. Data for the September master budget are given below: a. The August 31st balance sheet (Actual): cash accounts receivable inventory building and $30,000 133,000 32,813 203,500 accounts payable $62,016 capital stock 296,372 retained earnings 40,925 equipment (net) b. Actual sales for August and budgeted sales for September, October, and November are given below: August-Actual $190,000 September-Projected 375,000 October-Projected 405,000 November-Projected 310,000 C. Sales are 30% for cash and 70% on credit. All credit sales are collected in the month following the sale. There are no bad debts. d. The gross margin percentage is 65% of sales. The desired ending inventory is equal to 25% of the following month's COGS. One fourth of the purchases are paid for in the month of the purchase and the remaining 75% are purchased on account and paid in full the following month. e. f. The monthly operating expenses are $110,000 including the monthly depreciation of $6,000 In September, Mecca Company will purchase new office equipment for $30,000 cash. The expected useful life of the new equipment is 5 years, with no salvage value. It will be depreciated using the straight-line method. Mecca will start depreciating the equipment in September (full month). g. Dividends of $20,500 and $30,000 will be declared and paid in September and October, respectively. h. The company must maintain a minimum cash balance of $30,000. A line of credit is used to maintain this balance. Borrowing will be made in increments of $1,000. All borrowing is done at the beginning of the month and repayments are made at the end of the month. The annual interest rate is 12%, paid when the loan is repaid (ignore the accrual of interest). Required: 1. Prepare a balance sheet, income statement, and cash budget for the month of September and October