You hive just been hived as a new manegement tainee by Eamings Unimited, a distrbutor of eacrings to various ratail outhets lacated In shopping malis across the country. In the pess, the company has done very litte in the way of budgeting and at certala times af the year has experienced a shortage of cash, Since you sore well trained in budgeting you hnve decided to prepare a master budget for the upcoming second quartee. To this end, you have worked wath accounting and other areas to gather the information assembled below. The company sefis many styles of earrings, but all ase sold for the same price-\$17 per peic. Actual saies of earrings for the last tiree months and budgeted sales for the next six months follow (in pairs of eatringsi: The concentration of sales before and duzing Moy is due to Mother's Dayy Suthcient imventory should be on hand at the end of each thonth to supply 40% of the earrings sole in the following month: Suppliers are paid $5.80 for a pair of eerrings. One-haif of a month's purchases is paid for in the month of purchase; the other has is peld for it the followeng month. Al sales are on credit. Only 20 on of a montrys sales are collected in the alonth of sale. An additionat 70% is collected in the following month, and the remaining tof is collected in the second mont following sale Blad debts heve been neglaible. Monthy operating expenses fot the company are glven below. The company/s balance sheet as of March 31 is given below: The compony maintains a minimum cash balance of $68,000, Alt bortowing is done at the beginning of a month any repasments 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 31000 at the beginning of each month. The interest rate on these loans is 14. per month and for simplicity wo will assume that interest is not compounded. At the end of the quarter, the compeny would pay the bank all of the accurnulated interest on the loan and as much of the loan as possible fin increments of $1,000), whlle stail retaining at least $68,000 in cash Required: Prepare a master budget for the three-month period ending June 30 . include the following detaled ychedules: 1. a. A sales budget, by month and in total b. A schedule of expected cash colfections, by month and in total. c. A merchondise 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 tota 2. A cash butget. Show the budget by month and in total Determine any botrowng that woifd be heeded to maintain the minimum cash balonce of 568.000 3 A budgeted incume statement for the three-month period onaling June 30 . Use the contrisution approach: 4. A budgeted balance sheet as of tune 30 You hive just been hived as a new manegement tainee by Eamings Unimited, a distrbutor of eacrings to various ratail outhets lacated In shopping malis across the country. In the pess, the company has done very litte in the way of budgeting and at certala times af the year has experienced a shortage of cash, Since you sore well trained in budgeting you hnve decided to prepare a master budget for the upcoming second quartee. To this end, you have worked wath accounting and other areas to gather the information assembled below. The company sefis many styles of earrings, but all ase sold for the same price-\$17 per peic. Actual saies of earrings for the last tiree months and budgeted sales for the next six months follow (in pairs of eatringsi: The concentration of sales before and duzing Moy is due to Mother's Dayy Suthcient imventory should be on hand at the end of each thonth to supply 40% of the earrings sole in the following month: Suppliers are paid $5.80 for a pair of eerrings. One-haif of a month's purchases is paid for in the month of purchase; the other has is peld for it the followeng month. Al sales are on credit. Only 20 on of a montrys sales are collected in the alonth of sale. An additionat 70% is collected in the following month, and the remaining tof is collected in the second mont following sale Blad debts heve been neglaible. Monthy operating expenses fot the company are glven below. The company/s balance sheet as of March 31 is given below: The compony maintains a minimum cash balance of $68,000, Alt bortowing is done at the beginning of a month any repasments 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 31000 at the beginning of each month. The interest rate on these loans is 14. per month and for simplicity wo will assume that interest is not compounded. At the end of the quarter, the compeny would pay the bank all of the accurnulated interest on the loan and as much of the loan as possible fin increments of $1,000), whlle stail retaining at least $68,000 in cash Required: Prepare a master budget for the three-month period ending June 30 . include the following detaled ychedules: 1. a. A sales budget, by month and in total b. A schedule of expected cash colfections, by month and in total. c. A merchondise 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 tota 2. A cash butget. Show the budget by month and in total Determine any botrowng that woifd be heeded to maintain the minimum cash balonce of 568.000 3 A budgeted incume statement for the three-month period onaling June 30 . Use the contrisution approach: 4. A budgeted balance sheet as of tune 30