You have just been hired as a management trainee by Cravat sales company, a nationwide distributor of a designers silk ties. The company has an exclusive franchise on the distribution of the ties and the sales have grown so rapidly over the last few years that it has become necessary to add new members to the management team. you have been given the responsibility for all the planning and budgeting. Your first assignment is to prepare a master budget for the next three months starting April 1st. You are anxious to make unfavorable impression on the president and have assembled the information below. the large buildup in the sale below and during June is due to Father's Day. Ending inventories are supposed to equal 90% of the next month's sales in unit. The tie cost of the company $5 each. Purchase art paid As for the follows: 50% in the month of purchase and the remaining 50% in the following month. All the sales on credit, with no discount and payable within 15 days. The company has found, however, that only 25% of months sale are collected by month end. An additional 50% are collected in the following month, and remaining 25% are collected in the second month following sale. Bad debts have been negligible. The company's monthly selling and administrative expenses are given below: Variables: sales commissions $1.00 per tie fixed: wages and salaries $22,000 utilities $14,000 insurance $1200 depreciation $1500 miscellaneous $3000 all selling and administrative expenses are paid during the month, the cash, with the exception of depreciation and insurance expired. ich 31st The company has an agreement with the bank that allows to borrow an increment of $1000 at the beginning of each month, up to a total loan balance of $140000. The interest rate of these loans is 1% per month and for simplicity, we will assume that interest is not compounded. At the end of the quarter, the company would pay the bank all of the accumulated interest on the loan and as much of the loan as possible (in the increment of $1000 ) while still retaining at least $10,000 in cash. Required prepare a master budget for the three month. Ending June 30th include the following detail budget 1 a. The sales budget by the month and in total. b. A schedule of expected cash collection from the sales by month and in total. c. A merchandise purchases budget in unit and in dollars. Show the budget by month and in total. d. A schedule of expected cash disbursement for merchandise purchases, by month and in total. 2. A cash budget. Show the budget by month and in total. 3. A budgeted income statement for the three months period ending June 30 . Use the contribution approach. 4. A budgeted balance sheet As for June 30