You have just been hired as a new management taince by Eartings Unimied, a distributor of eartings to various retal ounlets iocated year has experienced a shortage of cash. Since you are well trained in budgeting. you have decided to prepare a master budget ior the upcoming second quater. To this end, you have worked with accounting and ocher areas to gather the information assembled below. The company selis many styles of eartings, but all are sold for the same ptice-518 per pair Actual sales of eamings for the last three months and budgeted sales for the nex six months follow fin peirs of eartingsk The concentration of sales before and during May is due to Mother's Day. Sufficient invertory should be on hand at the end of each month to suppy 40% of the earrings sold in the following month. Suppliers are paid $5.90 for a pair of eamings. One haif of a monthis purchases is paid for in the month of purchase; the other haif is paid for in the following month. All sales are on credit Only 20%6 of a month's cales are collected in the month of sale. An add tonal. 70% is collected in the following morth, and the remaining 10% is collected in the second month following sale. Bad debts have been negligible. Monthly opereting expenses for the compary are given below: Insurance is paid on an annsal basis, in November of each yeat: The compary plams to purchase $25.500 in new equi pment during Msy and $59.000 in new equipment during bune, boch purchases Wil be for cash. The company deciares dividends of 529250 each quartec, payobie in the first month of the folloving quarter. The company's baiance sheet as of March 31 is given beiow. The company ma ntaing a minimum cash balance of $69000. Al borrowing is done at me beginning of a month any repeyments are made ot the end of a month. The company maintains a minimum cash balance of $69,000. All borrowing is done at the beginning of a month; any repayments are made at the end of a month. The company has an agreement with a bank that allows the company to borrow in increments of $1,000 at the beginning of each month. The interest rate on 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 increments of $1.000), whie still retaining at least $69,000 in cash. Requlred: Prepare a master budget for the three-month period ending June 30. Include the following detalled schedules: 1. a. A sales budget, by month and in total. b. A schedule of expected cash collections. by month and in total. c. A merchandise purchases budget in units and in dollars. Show the budget by month and in total. d. A schedule of expected cash disbursements for merchandise purchases. by month and in total 2. A cash budget. Show the budget by month and in total. Determine any borrowing that would be needed to maintain the minimum cash balance or $69.000 3. A budgeted income statement for the three-month period ending June 30. Use the contribution approach. 4. A budgeted balance sheet as of June 30 . Complete this question by entering your answers in the tabs below. Prepare a master budget for the three-month period ending June 30 that includes a sales budget. by month and in tobal