You will prepare a static master budget, budgeted financial statements and a flexible budget/variance analysis for Karry No Key, Inc. which will sell karaoke machines. Assumptions: You plan to form Karry No Key on April 1 and expect the following: 1. Invest in exchange for stock 2. Purchase delivery truck with cash with $0 salvage value and expected useful life in years 3. Sales increase per month Collections in month of sale Collections of remainder in following month of sale 4. Desired ending inventory (% of next month's expected sales) Payments in month of purchase Payments of remainder in following month of purchase $ $ 100,000 60,000 10 2% #VALUE! #VALUE! 20% 10% 90% #VALUE! 5. Other operating expenses per month to be paid in month incurred Requirement 1: Complete the Sales Budget and Cash Collections for April-June and the quarter in total using applicable assumptions above. Sales Budget April May June Sales in units Price per unit #VALUE! #VALUE! #VALUE! Total sales dollars Cash Collections April May June April sales May sales June sales Total cash collected #VALUE! Total 1st Quarter April #VALUE! n/a Total 1st Quarter April n/a n/a n/a n/a n/a Accounts receivable at month end Requirment 2: Complete the Purchase Budget for April-June and the quarter in total using the applicable assumptions above. Purchases Budget April May June Total 1st Quarter April Sales in units n/a Desired ending inventory n/a Total required n/a Beginning inventory n/a Total units to purchase Cost per unit Purchases in dollars Cash Payments Inventory purchases: April purchases n/a #VALUE! #VALUE! #VALUE! #VALUE! n/a April May June Total 1st Quarter April n/a May purchases June purchases Total cash paid for inventory n/a n/a n/a Cash paid for other operating expenses Accounts Payable at month end Requirement 3: Using the information from above, prepare Karry No Key's quarterly budgeted financial statements. n/a n/a Assets Liabilities Shareholder's Equity