You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in Complete this question by entering your answers in the tabs below.

Req$1A$

Req $1$B

Req $1$C

Req $1$D

Req $3$

Prepare a master budget for the three$-$month period ending June $30$ that includes a schedule of expected cash collections, by month and in total. Complete this question by entering your answers in the tabs below.

Req $1$C

Req $3$

Prepare a master budget for the three$-$month period ending June $30$ that includes a merchandise purchases budget in units and in dollars. Show the budget by month and in total. $($Round unit cost to $2$ decimal places.$)$ 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 schedule of expected cash disbursements

for merchandise purchases, by month and in total.Assessment Tool iFrame

Req $1B$

Req $1$C

Req $1$D

Req $2$

Req $4$

Prepare a master budget for the three$-$month period ending June $30$ that includes a cash budget. Show the budget by month and in total. Determine any borrowing that would be needed to maintain the minimum cash balance of $$55,000.($Cash deficiency, repayments and interest should be indicated by a minus sign.$)$

$\backslash$table$[[$Earrings Unlimited$],[$Cash Budget$],[$For the Three Months Ending June $30],[,$April,May,June,Quarter$],[$Beginning cash balance$],[$Add collections from customers$],[$Total cash available,$0,0,0,0],[$Less cash disbursements:$],[$Merchandise purchases,,,,$0],[$Advertising$,,,,0],[$Rent$,,,,0],[$Salaries$,,,,0],[$Commissions$,,,,0],[$Utilities$,,,,0],[$Equipment purchases,,,,$0],[$ paid,,,,$0],[$Total cash disbursements,$0,0,0,0],[$Excess $($deficiency$)$ of cash available over disbursements,$0,0,0,0],[$Financing:$],[$Borrowings$,,,,0],[$Repayments$,,,,0],[$Interest$,,,,0],[$Total financing,$0,0,0,0],[$Ending cash balance,$$,$$$,0,$$$]]$Assessment Tool iFrame

Req $1$B

Prepare a master budget for the three$-$month period ending June $30$ that includes a budgeted income statement for the threemonth period ending June $30.$ Use the contribution approach.

Req $2$

Req $4$

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

has experienced a shortage of cash. Since 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$-$ $$15$ 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 $$4\mathrm{.}50$ for a pair of earrings. One$-$half of a month's purchases is paid for in the month of purchase; the other halr 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 $70\%$

is collected in the folowing month, and the remairing $10\%$ is 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.