You need to put your name and your ID # on the first page of your assignment. This is important as some points may be deducted if this information is missing 1. Prepare a sales budget for January through March and for the Quarter in total. The selling price per unit is $60.00. Use the last five digits in your ID number as basis for the data for budgeted sales in units. Budgeted sales are obtained by multiplying each number in the ID by 10,000. However, note that if your ID# contains the number 0 use 10 instead (i.e. a 0 is equal to 100,000.) For example, if the last five digits in your student ID are 97769, the budgeted sales in units would be: December of the previous year 90,000 January 70,000 February 70,000 March 600,000 April 90,000 2. Prepare a purchases budget and the schedule for Disbursements for Purchases for January through March and for the first quarter in total. Assume that the company only sells one product that can be purchased at $45.00 per unit. The market for this product is very competitive and customers highly value quality and on time delivery of the product. Also assume that currently it is company policy that ending inventory should equal 50% of next months projected sales. 3. Prepare a Selling and Administrative Expense budget 4. Prepare a cash budget for January through March and for the first quarter in total. The company maintains a minimum cash balance of $100,000 and this was the ending cash balance in the cash account on December 31. 5. Prepare the Budgeted Income Statement based on data including pertinent computed data from relevant budgets prepared above Additional Data: Past experience shows that 40% of sales are collected in the month of the sale, and 60% in the month following the sale. Other expenses include $165,000 per month for rent, $704,000 for advertising, and $176,000 per month for depreciation. All costs are paid in the current month except inventory purchases, which are paid in the month following the purchase (i.e. January purchases of inventory are paid in February). The company has an open line of credit with a bank and can borrow at an annual rate of 12%. For simplification assume that all loans are made at the beginning of the month when a borrowing need is identified and repayments are made at the end of a month when the company has excess cash(i.e. this company does not take out additional loans to pay current loans.) Also, interest associated with a loan is only paid at the time when that loan is paid (i.e. a loan is only paid if there is enough cash to pay off the whole loan, any interest associated with it, and the company still has enough cash left over to meet its requirement for the minimum cash balance.) Interest expense if it exist, however, should be reported in the income statement even when it has not been paid off (please note this instruction is different from what was discussed in the video so take note). Label the budgets prepared in Steps 1-5 as budget scenario A. 5. Repeat steps 2-5 for budget scenarios B and C using the following Desired Ending Inventory assumptions: Ending Inventory B. 95% C. 5% 6. Write a brief analysis of the three inventory policies depicted in the budget scenarios A, B and C and recommend a policy that the company should implement. Give reasons for your recommendation. Your write-up should be based on the results you obtained from the analyses in steps 1-5 above for each of the scenarios A, B, and C. Assume that you are writing on behalf of a professional consultant advising the President of the company about the companys inventory policies. Your write-up should be in the form of a one-page Memo to the President of the company. Organization, grammar, and spelling are important.