You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to varlous retall outlets located 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 experlenced 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-\$19 per pair. Actual sales of earrings for the last three months and budgeted sales for the next slx months follow (In pairs of earrings): The concentration of sales before and during May is due to Mother's Day. Sufficlent Inventory should be on hand at the end of each month to supply 40% of the earrings sold In the following month. Suppllers are pald $5.50 for a pair of earrings. One-half of a month's purchases is pald for in the month of purchase; the other half is paid for in the following month. All sales are on credlt. Only 20% of a month's sales are collected in the month of sale. An addiltional 70% is collected in the following month, and the remaining 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 pald on an annual bas1s, In November of each year. The company plans to purchase $23,500 in new equipment during May and $55,000 in new equipment during June; both purchases will be for cash. The company declares dividends of $26,250 each quarter, payable in the first month of the following quarter. The company's balance sheet as of March 31 is glven below: The company maintains a minimum cash balance of $65,000. 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 ), while still retaining at least $65,000 In cash. Required: Prepare a master budget for the three-month perlod 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 merchandlse purchases budget In units and In dollars. Show the budget by month and In total. d. A schedule of expected cash dlsbursements 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 of $65,000. 3. A budgeted Income statement for the three-month period ending June 30 . Use the contributlon 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 total. 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. repare a master budget for the three-month period ending June 30 that includes a merchandise ind in dollars. Show the budget by month and in total. (Round unit cost to 2 decimal places.) repare a master budget for the three-month period ending June 30 that includes a schedule of expected cash disbursements or merchandise purchases, by month and in total. Prepare a master budget for the three-month period ending June 30 that includes a cash budget. Show the budget by mon and in total. Determine any borrowing that would be needed to maintain the minimum cash balance of $65,000. (Cash deficiency, repayments and interest should be indicated by a minus sign.) Prepare a master budget for the three-month period ending June 30 that includes a budgeted income statement for the thre month period ending June 30 . Use the contribution approach. Prepare a master budget for the three-month period ending June 30 that includes a budgeted balance sheet as of June 30