westion completion Status WW, ZUUR WW Yur Lale penatis apply to case study if received after due date and time CASE SCENARIO You have just been hired as a new management trainee by Bahrain Company, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. Since you are well trained in budgeting, you have decided to prepare a master budget for the upcoming second quarter. To this end, you have worked with accounting and other areas to gather the information assembled below. The company dolls many styles of earrings, but all are sold for the same price-816 per pair Actual sales of earrings for the last three months and budgeted sales for the next six months follow (in pairs of earrings January (actual) 21,300 June (budget) 51.600 February (actual) 27,800 July (budget) 31.800 March (actual) 41,800 August (budget) 29,600 April (budget) 66,800 September (budget) 20.000 May (budget) 101.800 The concentration of sales before and during May is due to Mother's Day. Sufficient inventory should be on hand at the end of each month to supply 40% of the earrings sold in the following month Suppliers are paid $4.90 for a pair of earrings. One-half of a month's purchases is paid for in the month of purchase; the other half is paid for in the following month. All sales are on edit . Only 20% of a month's sales are collected in the month of sale. An additional 70% is collected in the following month, and the remaining 10% is collected in the second month following sale. Bad debts have been negligible. Monthly operating expenses for the company are given below: utionCam Variable: Sales commissions 45 of sales Fixed: Advertising $ 290,000 Rent $ 27.000 Salaries $ 124,000 Utilities $ 11,500 Insurance $3.000 Depreciation $ 23,000 Insurance is paid on an annual basis, in November of each year, The company plans to purchase $20,500 in new equipment during May and 549,000 in new equipment during June; both purchases will be for cash. The company declares dividends of $21.750 each quarter payable in the first month of the following quarter. The company's balance sheet as of March 31 is given below. Assets Cash 383.000 Accounts receivable ($41.700 February sales: $501,600 March sales) 543300 Inventory 150920 Prepaid insurance 25.500 Property and equipment (net) 1.040.000 Total assets $ 7.622,728 Liabilities and Stockholders' Equity Accounts payable $ 109,000 Dividends payable 21,750 Common stock 980,000 711.978 Retained earnings $ 1822.728 Total liabilities and stockholders' equity : 8 . 18 BA The company maintains a minimum cash balance of $50.000. Al donowing is done begiving of a month any repayments are made at the end of a month The company has an agreement win a bank tot slows the company to borrow increments of $1.000 at the beginning of each month The Wrest rate on these per month and for my we w some interests of compounded. At the end of the Quarter the company would pay the banks of the accurated rest on the loan and as much of them as possible increments of $1.000) while stilling at least 50.000 in cash Required: You we required to prepare a master budget in excel file for the three month period ending June 20. Include the following contented 1. Asales budget, by month and in total 2. Aschedule of expected cash collections, by month and in total J. A merchandise purchases budget in units and indoor Show the budget by month and in total 4. A schedule of expected cash disbursements for merchandise purchases, by month and into S.A cash budgot show the budget by month and in the Determine wyborowing that would be meded to maintain the minimun cash balance of $59.000. A budited income statement for the three month period ending June 30 Use the contribution approach 7. A budgeted balance sheet as of June 30 la precaring your answers in the excelle you should generally design the excel file to bolude the following shorts content page Beginning balance budget Budgeting assumptions Sales budget Schedule expected cash collections Merchandise purchases budget . Schedule expected cash disbursements Seling & administrative budget Cashbudget Budgeted income statement Budgeted balance sheet Rolovant explanations of your calculations Include your name & D in the header OD DR2