You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located ling June $30$ that includes a cash budget. Show the budget by

ded to maintain the minimum cash balance of $$63,000.$

e indicated by a minus sign.

in shopping malls across the country. In the past, the company has done very little in the way of budgeting and, at certain times of the

year, has experienced a shortage of cash. Because you are well trained in budgeting, you have decided to prepare a master budget

for the upcoming second quarter. To this end, you have worked with accounting and other areas to gather the information assembled

below.

The company sells many styles of earrings, but all are sold for the same price$-$ $$17$ per pair. Actual sales of earrings for the last three

months and budgeted sales for the next six months follow $($in pairs of earrings$)$:

The concentration of sales before and during May is due to Mother's Day. Sufficient inventory should be on hand at the end of each

month to supply $40\%$ of the earrings sold in the following month.

Suppliers are paid $$5\mathrm{.}30$ for a pair of earrings. One$-$half of a month's purchases is paid for in the month of purchase; the other half is

paid for in the following month. All sales are on credit. Only $20\%$ of a month's sales are collected in the month of sale. An additional

$70\%$ are collected in the following month, and the remaining $10\%$ are collected in the second month following sale. Bad debts have

been negligible.

Monthly operating expenses for the company are given below:

Insurance is paid on an annual basis, in November of each year.

The company plans to purchase $$22,500$ in new equipment during May and $$53,000$ in new equipment during June; both purchases

will be for cash. The company declares dividends of $$24,750$ each quarter, payable in the first month of the following quarter.

The company's balance sheet as of March $31$ is given below: