Yummy Delight is a frozen yogurt store selling frozen yogurt in one-kilogram sizes and has the following information: Estimated monthly Sales (in cups) January to March: 45,000 per month April to September: 70,000 per month October to December: 22,000 per month Frozen yogurt cups sell for $2.00 each from January 1* to March 31st, and $2.50 for April 1* to June 30th, $2.90 for July 1st to September 30th, and $3.00 for October 1st to December 31 st. Half of the sales are paid in cash, and the other half is on account. 90% of the sales on account are collected in the current quarter, and the remaining 10% of credit sales are collected in the following quarter. The Accounts Receivable at December 31, 2018 was collected in January 2019. Purchases and Inventory Each cup requires 1kg of frozen yogurt and 1 cup. Frozen yogurt cost $14 for a 10kg tub and cups cost $10 for a box of 100 cups. All purchases are made on credit. Half of the purchases are paid for in the quarter of the purchase, and the other half is paid in the following quarter. (For simplicity, assume that the inventory has the same proportion of cups and frozen yogurt on hand, and that part boxes of cups and frozen yogurt can be purchased.) At the end of each quarter, they plan on having enough inventory on hand to cover 4 of the sales for the next quarter. Expenses and Disbursements Fixed expenses are expected to be $20,500 per quarter (Salaries of $13,000 Rent of $3,000 and depreciation of $4,500). Rent is paid at the beginning of each month. The accounts payable at December 31 2018 was paid in full on January 31 2019. Dividends $340,000 of dividends are paid on June 30", and $240,000 of dividends are paid on Sept 30th.Line of Credit The store has a line of credit that they can borrow from time to time. Assume that advances occur on the first day of each quarter, and repayments occur on the last day of each quarter. Any extra cash is first used to pay off the line of credit. Interest payments are made on the 1s day of the following quarter. For example, interest for the period January 13 to March 313 is due April 1 1. Interest is 3% per quarter. Any extra cash is first used to pay off the line of credit. Assume that advances occur on the first day of each quarter, and repayments occur on the last day of each quarter. The only line of credit activity in the last 3 months of 2018 was a Nov 1st advance of $6,000. Cash At the end of each quarter, the minimum cash balance is $1,000. Beginning Balances at December 31, 2018 Cash $ 1,000 Inventory 5,000 Accounts Receivable 2,000 Equipment 180,000 Accumulated Depreciation (70.000) Total Assets 118,000 Accounts Payable $22,000 Line of Credit 6,000 Retained Earnings 90,000 Total Liabilities and Equity 118,000 Required: 1. Complete the provided Excel schedules. 2. Prepare a balance sheet at December 31, 2019. 3. Prepare an income statement for the year ending December 31, 2019. 4. What is the purpose for Yummy Delight to budget and what can the stakeholders take from this? Do you have other recommendations?Yummy Delight Monthly Cash Flow Forecast for the year ending December 31 2019 ist 2nd ard 4th cash - beginning 1,000 1,000 1,000 1,000 Cash receipts Cash disbursements cash before Line of Credit 1,000 1,000 1,000 1,000 Net Borrowing/(Replayments) Cash - ending balance 1,000 1,000 1,000 1,000 Line of Credit - opening balance 6,000 6,000 6.000 6,000 add: Borrowing Sub-total (subject to interest) 6,000 6,000 6,000 6,000 less: Repayment Line of Credit - ending balance 6,000 6,000 6,000 6,000 Inventory (in $) opening balance 5,000 5,000 5,000 5,000 add: purchases less: amount sold ending balance 5,000 5,000 5,000 5,000 Cash receipts Cash disbursementsYummy Delight Balance Sheet at December 31 2019 ASSETS Cash A/R Inventory Equipment Accumulated Depreciation: NBV Equipment Total Assets LIABILITIES AND EQUITY A/P Line of Credit Accrued Interest Retained Eamings Opening Income less: Dividends Ending Retained Earnings Total Liabilities and Equity: Yummy Delight Income Statement for the year ending December 31 2019 Sales COGS Gross Profit Expenses: list expenses Total Expenses Net Income