Attached is a case study for my class. I am confused on what needs to be done. Can someone please help me?

MBA 6100 - Fall 2015, Block 2 Case Study #2 - Budgeting Bilker Corp is a small, rapidly growing wholesaler of consumer electronic products. The company's main product lines are small kitchen appliances and power tools. Bilker Corp is interested in purchasing some new material-handling equipment right after the beginning of 2016. They would like to finance the new equipment with cash and marketable securities, but if necessary they can get a short-term loan from a local bank. You have been engaged to review the work of a staff accountant who prepared a master budget for Bilker Corp for the first quarter of 2016. After a preliminary review, the president is certain the schedules contain errors. The president needs an accurate master budget in order to make financial decisions for the upcoming quarter. The marketing manager has recently completed a sales forecast. She believes the company's sales during the first quarter of 2016 will increase by 7 percent each month over the previous month's sales. Then sales are expected to remain constant for several months. Bilker Corp's projected balance sheet as of December 31, 2015 is as follows: Cash Accounts receivable Marketable securities Inventory Buildings and equipment (net of accumulated depreciation) Total assets $ Accounts payable Sales commission payable Bond interest payable Property taxes payable Bonds payable (8%; due in 2025) Common stock Retained earnings Total liabilities and stockholders' equity $ $ $ 25,000 408,000 15,000 354,705 1,462,000 2,264,705 431,779 34,000 20,000 8,000 600,000 750,000 420,926 2,264,705 The staff accountant used the following information to prepare a budget for the first quarter of 2016: 1) Projected sales for December 2015 are $850,000. Credit sales are typically 60% of totals sales. Bilker Corp's credit experience indicates that 20% of credit sales are collected during the month of sale, and the remainder are collected during the following month. 2) Bilker Corp's cost of goods sold generally runs at 65% of sales. Inventory is purchased on account and 25% of each month's purchases are paid during the month of purchase. The remainder is paid during the following month. In order to have adequate stocks of inventory on hand, the company attempts to have inventory on hand at the end of each month equal to 60% of the next month's projected cost of goods sold. 3) The controller has estimated that Bilker Corp's other monthly expenses will be as follows: Sales salaries $ 65,000 Advertising and promotion 30,000 Administrative salaries 40,000 Depreciation 82,000 Interest on bonds Property taxes 4) 5) 6) 7) 4,000 2,000 In addition, sales commissions run at the rate of 4 percent of sales. Sales commissions are paid in the month following the sale. The company president has indicated that the company should invest $360,000 in an automated inventory-handling system to control the movement of inventory in the company's warehouse just after the new year begins. This equipment purchase will be financed primarily from the company's cash and marketable securities. However, the president believes the company needs to keep a minimum cash balance of $20,000. If necessary, the remainder of the equipment purchase will be financed using short-term credit from a local bank. The minimum period for such a loan is three months. The current short-term interest rate is 12 percent per year and is expected to remain at this rate through the time the equipment is purchased. If a loan is necessary, the president has decided that it should be paid off by the end of the first quarter, if possible. If the entire loan cannot be paid off, the maximum amount should be paid on the last day of the quarter, while maintaining the minimum cash balance. Partial payments must be made in $1,000 increments. Bilker Corp's board of directors has indicated an intention to declare and pay dividends of $125,000 on the last day of each quarter. The interest on any short-term borrowing will be paid at the end of each month. Interest on Bilker Corp's bonds is paid semiannually on January 31 and July 31 for the preceding six-month period. Property taxes are paid semiannually on February 28 and August 31 for the preceding six-month period. The master budget schedules prepared by the staff accountant are as follows: Required: (1) Prepare corrected budget schedules using the same schedule templates the staff accountant used. Utilize excel functions as much as possible. Round all amounts to the nearest dollar. (2) Prepare Bilker Corp's budgeted statement of retained earnings for the quarter ended March 31, 2016. (3) Prepare Bilker Corp's budgeted balance sheet as of March 31, 2016. (Hint: On March 31, 2016, Bond Interest Payable is $8,000 and Property Taxes Payable is $2,000.) (4) Prepare a memo to the president of Bilker Corp. regarding the results of your engagement. Your memo should include recommendations you may have for the company based on your work