You are the sole shareholder and operator of a small incorporated business that purchases off$-$brand video drones and re$-$sells them. You started your business five years ago. The following data have been assembled to assist in the preparation of the master budget for the first quarter of the $2024.$ To get started, download and open the Excel file $195-$Starter. Then save it as YournameBudgetProject. You will do your work in this new file. As of the end of last year, your company had the following balance sheet: Cash $7000$ Accounts receivable $86400$ Inventory $28,980$ Prepaid insurance $3,500$ Total current assets $125,880$ Equipment $35,000$ Accumulated amortisation. $7000$ Net equipment $28000$ $ Accounts payable $87,780$ Taxes payable $1500$ ST loan interest payable $20$ ST loan payable $2000$ Total current liabilities $91300$ LT Loan payable $30000$ Total liabilities $121300$ Common shares$*$ Retained earnings $12580$ Total liabilities and equity. $153880$ Total assets. $153880*10,000$ common shares, issued for $$2$ each $ ABC Company Balance Sheet $12/31/2023$ Company Information $1-$ The company sells each drone for $$60.$ Actual sales for November were $1700$ units and for December were $2000$ units. Projected sales for January are $2300$ units, $2600$ for February, $2500$ for March, and $2800$ for April. $2-$ Sales are all on account and $45\%$ of the cash for sales is collected in the month of sale, $35\%$ is collected in the following month, and the remaining $20\%$ is collected in the month after that. $3-$ The company purchases enough units each month to cover the current months sales and maintain an ending inventory equal to $30\%$ of the following months projected sales. $4-$ Each unit costs the company $$42.$ Inventory purchases are paid for in the month following purchase. $5-$ The company is expected to incur and pay fixed operating expenses of $$3,500$ per month. $6-$ On August $1,2021,$ the company paid $$6,000$ for one years insurance coverage. $7-$ Variable operating expenses are projected to be $12\%$ of sales and are paid in the month incurred. $8-$ Interest is paid monthly on the long$-$term loan at a rate of $6\%$ per year. They are also required to make quarterly principal payments, the next is due at the end of March for $$2,500.$ BUAD $195$ BUDGET PROJECT Winter $20249-$ Equipment costing $$20,000$ will be purchased for cash at the beginning of January. All equipment is depreciated on a straight$-$line basis over $10$ years with no residual value. $10-$ You pay salaries totalling $$3,000$ each month. For simplicity, ignore all payroll tax implications. $11-$ You sell $1,000$ additional common shares to your uncle for $$2\mathrm{.}00$ per share at the beginning of February. $12-$ You will declare and pay a dividend of $$8,000$ at the beginning of February. $13-$ Income tax expense for this small business is calculated at $15\%$ of the earnings before taxes. The company pays income tax instalments of $$750$ per month. $14-$ The company must maintain a minimum cash balance of $$10,000.$ A short$-$term loan is available to cover any shortfall. Interest is paid monthly on the previous month's loan balance at a rate of $12\%$ per year. $15-$ Any cash above the minimum available at month end is used to reduce any existing short$-$term loan. The interest for the short term debt should be calculated and shown separately from the long term debt. Both borrowings and repayments are assumed to occur at the beginning of the month. Prepare cash budget profOrmaa of income statement