- Universal's managing director, Beth Davies-Lowry, has indicated that the rm should, just aer the new year begins, invest $125 000 in an automated inventory- handling system to control the movement of inventory in the rm's warehouse. To the extent possible, these equipment purchases would be nanced from the rm's cash and marketable securities. Davies-Lowry believes that Universal needs to keep a minimum cash balance of $25 000. If necessary, the remainder of the equipment purchases would be nanced using short-term credit from a local bank. The minimum period for such a loan is three months. Hanson believes short-term interest rates will be 5 per cent per year at the time of the equipment purchases. If a loan is necessary, Davies-Lowry has decided it should be paid off by the end of the rst quarter if possible. - Universal's board of directors has indicated an intention to declare and pay dividends of $50 000 on the last day of each quarter. - The interest on any short-term borrowing would be paid when the loan is repaid. Interest on Universal's long-term loan is paid semi-annually, on 31 January and 31 July, for the preceding six-month period. - Property taxes are paid half-yearly on 28 February and 31 August for the preceding six-month period. Required: Prepare Universal's annual budget for the rst quarter of next year commencing 1 January by completing the following schedules and statements: 1. Sales budget Next year lst quarter 2. Cash receipts budget Cash receipts budget Cash receipts from credit sales made during current month sales made during preceding month Total cash receipts Cash receipts from credit