what are the answers for questions 2, 3 and 4???

Case 9-27 Master Budget with Supporting Schedules [LO2) Knockoffs Unlimited, a nationwide distributor of low-cost imitation designer necklaces, has an exclusive franchise on the distribution of the necklaces, and sales have grown so rapidly over the past few years that it has become necessary to add new members to the management team. To date, the company's budgeting practices have been inferior, and at times the company has experienced a cash shortage. You have been given responsibility for all planning and budgeting. Your first assignment is to prepare a master budget for the next three months, starting April 1. You are eager to make a favourable impression on the president and have assembled the information below. The necklaces are sold to retailers for $10 each. Recent and forecast sales in units are as follows: January (actual) February (actual) March (actual) April 29. see June 27, July 40,290 August 66,00 September 100,000 51,00 31,000 29,90 26, 20 May The large buildup in sales before and during May is due to Mother's Day. Ending inventories should be equal to 40% of the next month's sales in units. The necklaces cost the company $4 each. Purchases are paid for as follows: 50% in the month of purchase and the remaining 50% in the following month. All sales are on credit, with no discount, and payable within 15 days. The company has found, however, that only 20% of a month's sales are collected by month-end. 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. The company's monthly selling and administrative expenses are given below: 4% of sales Variable: Sales commissions Fixed: Advertising Rent Wages and salaries Utilities Insurance Depreciation $203, eee 18,500 187,200 7.499 3,209 15, eee All selling and administrative expenses are paid during the month, in cash, with the exception of depreciation and insurance. Insurance is paid on an annual basis, in November of each year. The company plans to purchase $16.400 in new equipment during May and $41.000 in new equipment during June; both purchases will be paid in cash. The company declares dividends of $15,200 each quarter. payable in the first month of the following quarter. The company's balance sheet at March 31 is given below: $ 75,800 Assets Cash Accounts receivable ($27,808 February sales; $320, eee March sales) Inventory Prepaid insurance Fixed assets, net of depreciation 347.eag 185,600 22.400 955,800 Total assets $1,505, eee $ Liabilities and Shareholders' Equity Accounts payable Dividends payable Common shares Retained earnings 180.se 15, 208 818. eee 579, eee Total liabilities and shareholders' equity $1,505, 890 The company wants a minimum ending cash balance each month of $50.000. All borrowing is done at the beginning of the month. with any repayments made at the end of the month. The interest rate on these loans is 1% per month and must be paid at the end of each month based on the outstanding loan balance for that month. Required: Prepare a master budget for the three-month period ending June 30. Include the following detailed budgets: a. A sales budget by month and in total. Sales budget April 63.000 is 10 S 860.000 May 100.000 S 10 1.000.000 June 51.000 S 10 $ 510.000 Quarter 217.000 S 10 $ 2.170.000 Selling price per unit Total sales b. A schedule of expected cash collections from sales, by month and in total. February sales March sales April sales May sales June sales Total cash collections KNOCKOFFS UNLIMITED Schedule of Expected Cash Collections April May June is 27.000 280.000 40.000 [ 132.000 462.000 60.000 200.000 700.000 102.000 S 439.000 $ 702.000 868.000 Quarter $ 27,000 320,000 600.000 900.000 102.000 $ 2.000.000 c. A merchandise purchases budget in units and in dollars. Show the budget by month and in total. KNOCKOFFS UNLIMITED Merchandise Purchases Budget April May June Quarter Budgeted sales in units 65.000 100.000 51.000 217.000 Add: Budgeted ending inventory 40,000 20.400 12.400 12.400 Total needs 108,000 120.400 63.400 229.400 Less: Beginning inventory 26.400 40.000 20.400 28.400 Required unit purchases 79,800 80.400 43.000 200.000 Unit cost S4 S4 S4 S Required dollar purchases $ 318.400 S 321,800 $ 172.000 3 812,000 d. A schedule of expected cash disbursements for merchandise purchases, by month and in total. KNOCKOFFS UNLIMITED Schedule of Expected Cash Disbursements April May June March purchases S 100.800 April purchases 150,200 159,200 May purchases I 160.800 160.800 June purchases 85.000 Total cash disbursements S 260.000 S 320.000 S 248.800 Quarter $ 100,800 318.400 321.800 85.000 S 828.800 2. A cash budget. Show the budget by month and in total. (Round your Intermediate calculations and final answers to the nearest whole dollar. Also, round down your Interest calculations to the next whole dollar amount. Cash deficiency, repayments and Interest should be Indicated by a minus sign. Do not leave any empty spaces; Input a O wherever It Is required.) June Quarter KNOCKOFFS UNLIMITED Cash Budget For the Three Months Ending June 30 April May Cash balance, beginning Add receipts from customers Total cash available Less disbursements: Purchase of inventory 260.000 320.000 Advertising 203.000 203.000 Rent 18.500 18.500 Salaries and wages 107.200 107,200 Sales commissions 28.400 40.000 Utilities 7.400 7.400 Dividends paid 15.200 Equipment purchases or 16.400 Total disbursements 637.700 712.500 Excess (deficiency) of receipts over disbursements (637,700) (712.500) Financing: Borrowings Repayments Interest Total financing Cash balance, ending $ (637,700) S (712,500) 243,800 203.000 18.500 107 200 20.400 7.400 828.800 609,000 55.500 321.800 88.800 22,200 15.200 57,400 1.994,500 (1.994,500) 41.000 844.300 (344,300) $ (644,300) S (1,994,500) 3. A budgeted Income statement for the three-month period ending June 30. Use the variable costing approach. KNOCKOFFS UNLIMITED Budgeted Income Statement For the Three Months Ended June 30 Variable expenses Fixed expenses 4. A budgeted balance sheet as of June 30. KNOCKOFFS UNLIMITED Budgeted Balance Sheet Assets Total assets Liabilities and Shareholders' Equity Total liabilities and shareholders' equity $