You have just been assigned to a new manager who believes you have exceptional budgeting skills. Since you began your job last summer, you have been showing management your latest spreadsheets and how you use your new-found knowledge of Managerial Decision-Making to make sound business decisions. Your new manager is responsible for the nationwide distribution of the newly developed Self Protection Device (SPD), using an ultrasonic sound emission, DNA material capture via a retractable claw, and an amazing 250,000 lumen LED flashing light. Through multiple franchise agreements, sales have grown very rapidly, and the timing is right for you to join her team and to show your skills. You have just been given responsibility for all planning and budgeting of the entire division. Your first assignment is to prepare a master budget for the next three months, starting October 1, 2021. You accept this responsibility with enthusiasm. You are anxious to impress your new manager and the president of the parent company (Allteq Solutions) who has a very high regard for you. To commence your new role, you have assembled the following pertinent information:

Note: The company desires a minimum ending cash balance each month of $10,000. The SPDs are sold to retailers for $35 each and they are flying off the shelves. Recent forecasted sales in units are provided below:

June (actual)	60,000	November	22,000
July (actual)	45,000	December	35,000
August (actual)	35,000	January	20,000
September	25,000	February	24,000
October	20,000

The increased sales volume before and during December is due to Christmas with SPD being a favorite. Ending inventories are supposed to be equal to 90% of the next month's sales in units. The cost of each SPD is $15.

Purchases are paid for in the following manner: 50% in the month of the purchase and the remaining 50% paid in the monthly following the purchase. All sales to the distributors are made on credit terms with no discount (for now) and payable withing 15 days. The SPD division has determined that only 25% of a month's sales are collected by the end of the month in which the sale occurred. An additional 50% is collected in the month following the sale and the remaining 25% is collected in the second month following the sale. Bad debts have been negligible, supporting the favorable credit terms.

Below is a display of the SPD division monthly selling and administrative expenses:

Variable:
Sales Commissions	$1.50 per SPD
Fixed:
Wages and Salaries	$65,000
Utilities	$35,000
Insurance	$2,000
Depreciation	$3,000
Miscellaneous	$15,000

Selling and administrative expenses are all paid during the month, in cash, with the exception of depreciation (of course) and insurance is pre-paid for the duration of the policy. Due to a violation of an existing copyright, lawyers for Allteq Solutions have negotiated a one-time infringement penalty to be expensed and paid during November for $200,000 cash. The newly formed SPD division contributes to the corporate dividend at a rate of $195,000 each quarter, payable in the first month of following quarter. SPD balance absence if $8500

Balance Sheet as of September 30, 2021

Assets	Liabilities and Stockholders Equity
Cash $40,000	Accounts Payable $275,000
Accounts Receivable $850,000	Dividends Payable $125,000
Inventory (38,600 units) $650,000	Capital Stock $962,400
Prepaid Insurance $22,000	Retained Earnings $753,400
Fixed Assets, net of $553,800 Depreciation
Total Assets $2,115,800	Total Liabilities and Stockholder $2,115,800 Equity

An agreement with East Rivers Bank allows you to borrow in increments of $1,000 at the beginning of each month, up to a total loan amount of $350,000. The interest rate on these loans is 7% annually (pretty high considering market rates), but the interest is not compounded, meaning this is simple interest only. At quarter end, SPD would pay East Rivers Bank all of the accumulated interest on the loan and as much of the balance of the loan as soon as possible (include $1,000 increments) while retaining the minimum $10,0000 cash balance.

Use IF(excess/deficit<10,000, roundup(-excess/deficit+15000, -3, 0) where "excess/deficit" = the cell address of where you compute each month's cash deficit or excess.

Required:

a master budget for the three months ending December 31, 2021. Include the following budget schedules and financial statements:

1) Sales Budget by month and total for the quarter

2) Schedule of expected cash collections from sales, by month and total

3) Merchandise purchases budget in units and in dollars, by month and total

4) Schedule of expected cash disbursements for merchandise purchases, by month and total

5) Cash Budget, by month and total

6) a budgeted Income Statement for the three months ending December 31, 2021. Use the contribution approach.

7) a budgeted Balance Sheet as of Dec 31, 2021.