Your first assignment is to prepare a Master Budget for the next $12$ months startingzanuarx $1,2024.$ You are anxious to make a favourable impression on the president and have assembled the information below the company purchases the Caps from a factory in Montreal which costs the company $$5\mathrm{.}00$each $($all on account$).$ Purchases are made based on the current month's sales in units plus and ending inventory to equal $30\%$ of the next month's sales in units. Purchases are paid for $40\%$in the month of purchase and the remaining $60\%$ in the following month the Caps are sold at wholesale to other resellers as well as through own stores to indixiaualcustomers. $70\%$ of total sales, all on account are made as wholesale for $$8\mathrm{.}00$ each and $$15\mathrm{.}00$each to the individual customers in the mall stores $(30\%$ of total sales, all in cash$).$ Recent and forecasted total sales in units are as fallows: Months Units Months Units October

$2023$ Actual $20,000$ January $2024$ Budgeted $25,000$November $2023$ Actual $24,000$

February $2024$ Budgeted $20,000$December $2023$ Actual $26,000$The company has found that only $40\%$ of a month's credit sales are collected in the following Manthan the remaining $60\%$ is collected in the second month following the sales.

Bad debts have beennegligiblee company is planning to open a new store in a shopping mall in March $2024$ and expects to increase its sales by $10\%$ every month from March to July $2024$ and then decline by $10\%$ during August, September, and October $2024$ and afterward the sales will be unchanged. Opening the new store will cost the company $$40,000$ per month in advertising during February and March

$2024.$ Furniture and Fixtures will cost $$80,000$ during February payable in $30$ days.

The companies planning to buy sales equipment costing a total of $$240,000$ February, payment in $3$ instalments starting March and every $3$ months thereafter.

The rent for the new store will be $$6,000$ a month startingFebruarx $2024.$ A new Sales Manager will be hired at a monthly salary of $$5,000$ per month and he will start in March $2024.$ The additional costs of running the new store will be $$4,000$

per month when the store opens. To cover all the extra costs due to the new store, the president of the company decided torrovide an interest$-$free loan of $$50,000$ to the company on February $1,2024,$ with the condition that the company will repay the loan in full at once whenever there is sufficient cash balance available after the bank loan is repaid the company's monthly operating expenses are given below:kariable postsales Commission $($retail stores only$)$ $$1\mathrm{.}50$ per Cap sald Fixed Costs: Wages and Salaries $$40,000$Utilities $5,000$Insurance $1,600$Depreciation $4,0000$ office rent $7,000$Miscellaneous expenses $3,500$All operating expenses are paid during the month in cash. The company pays a salary of $$8,000$ eachmonth to the owner Bobby Paul, payable on the $1$st week of next month. The company's balance sheet on December $31,2023,$ is given below: ASSETS Cash

$$20,000$ Accounts Receivable $($$$80,640$ from Nov. sales; $$145,600$ from Dec. Sales

$226,240$Inventory $(7,500$ units$)$

$37,500$Fixed Assets

Net of Depreciation

$250,000$ Total Assets

$..$ $ $533,740===$

$==$LIABILITIES AND

SHAREHOLDER'S EQUITY Accounts Payable

$77,100$Salaries Payable

$

$8,000$Capital Stock

$..300,000$Retained Earnings $148,640$Total Liabilities and Shareholders' Equity

$ $533,740===$

$======$The company maintains a policy to have

a minimum ending cash balance of $$20,000$ at the end of each month. It has a Line of Credit agreement with the Popular Bank of Canada that allows the company. tomorrow in increments of $$1,000$ at the beginning of each month, up to a total line of credit of $$100,000.$ The interest rate on these loans is $1\%$ per month, and for simplicity, we will assume that interest is not compounded. Whenever possible, the company would repay the bank as much of the loan as possible in increments of $$1,000),$ while still retaining at least $$20,000$ in cash balance. Interest on the loan is pedantry at the time of repayment of the loan and only on the repayment amount.

The loan from the resident will be paid whenever there will be sufficient cash balance after the repayment of bank loan Required: Prepare a master budget for the $12$ months from January to December $2024.$ Include the following in detail:$1.$ A Cover page indicating your group number, member names with ID and participation in details$\mathrm{.}2.$ a$.$ A Sales Budget, by month and in total. $[10$ Marks$]$b$.$ A Schedule of expected cash collections from sales, by month and in total. $[15$ marks. A Merchandise Purchases budget in units and dollars. Show the budget by month and intotal $110$ Marks$]$d$.$ A Schedule of Expected Cash Disbursements for merchandise purchases, by month and intatal. $[10$ Marksle. A Cash Budget. Show the budget by month and in Total. $[30$ Marks$]3.$ A Budgeted Income Statement for the year ending December $31,2024.[10$ Marks$]4.$ A Budgeted Balance Sheet as of December $31,$

$2024.[10$ Marks$]$ please assist in excel format please

Answer rating: 100% (QA)

To prepare the master budget well break it down into sections Cover Page Group Number Your group num... View the full answer