-We resly need to got this new msterial-handsing equipment in operation just after the new year begins:i hope we can finarice it largoly with cash and marketable securities, but if necossary wo can get a short-ferm loan down at Metrobarik. This statement by Beth. Davies-Lowry, president of Intercoastal Electronics. Company, concluded a meeting stie had called with the firm's top management intercoasta is o small. roplely growing wholeseler of consumer ciectronic products. The firm's mein product lines are small kischen npplances and power took. Marcia Wicox hetercoastai's General Manager of Marketing, has recenty completed a sales forecast. She boliewes the company's sales during the first quater of 20x1 will increase by 10 percent ench month over the previous month's sales. Then Wiicax expects sales to remain constart for several months Intercosstal's projected balance sheet as of December 3L, 20x0. is as follows: Jack Hanson, tho assistant controller, is now preparing a monthly budgot for the first quarter of 201, in the process, the foliowing infoemstion has been occumulated: 1. Projected sales for December of 20x0 ome $500.000. Credit sales typically are 70 percent of total sales. theecoasta's cedit experience indicates that 20 percent of the credit sales are collected during the month of sale, and the remainder are colected during the following month. 2. Interceastal's cost of goods sold generelly runs at 70 percent of sales. Inventory is purchased on account, and 30 percent of each month's purchases are poid during the month of putchase. The remainder is paid during the following month. In order to have adequate stocks of inventory on hand, the firm attempts to have imentory at the end of each moner equal to half of the next month's projected cost of goods sold. 3. Hanson has ettimated that intercoastal's other monthly expenses wis be as follows: In addition, sales commissions tun ot the rate of 3 petcent of sales. 4. Interconstars presdent, Oavies-Lowny, has indicated that the frm should invect 5105,000 in an sutomuted invesiory tandling system to control the movement of inventory in the fitm's warehouse just anter the new yoar beging. These equipment purchases will be financed pritiorily from the firm's cash and matketable securities. Howevec Onvios Lowty beleves that lintercoastal needs to keep a minimum cast balance of 540.000. If necessary. the remainder of the squipenent purchuses wit be financed using short-term credit. from a local benk, The minimum period for such o loan is three months. Hanson belfeves short-term. interest rates will be 10 percent per year at the time of the oquipment perchuses. If a losen is necessary, Daves Lowry ties decided it thould be paid off by the end of the first querter if possible. 5. lntercoestars boerd of tlirectors has indicated an intention to declere ond pay didends of $75,000 on the iast dey of each quarter. 6. Tho interest on aty short eem borrowing will be poid when the loan is repald, interest on interccastars bonds is paid iemionnualy on Jenuery 31 and July 31 for the preceding socmonth peeciod. 7. Property taxes are poid temiannualy on February 28 and August 31 tor the preceding soc-month period. Required: Prepare intereoestai Electronics Company/s master budgot for the first quarter of 201 by completing the followeg schedules and staterients Required: Prepare Intercoastal Electronics Company's master budget for the first quarter of 20x1 by completing the following schedules and statements. 1. Sales budget