can you please help me with this question and could you please explain how you Its solved . Doing it on paper is fine if thats easier for you. Thank you so much.

Knockoffs Unlimited, a nationwide distributor of low-cost imitation designer necklaces, has an exclusive franchise on the distribution of the necklaces, and sales have grown so rapidly over the past few years that it has become necessary to add new members to the management team. To date, the company's budgeting practices have been inferior, and, at times, the company has experienced a cash shortage. You have been given responsibility for all planning and budgeting. Your rst assignment is to prepare a master budget for the next three months, starting April 1. You are anxious to make a favourable impression on the president and have assembled the information below. The necklaces are sold to retailers for $10 each. Recent and forecasted sales in units are as follows: January (actual) 26,666 June 56,666 February (actual) 26,666 July 36,666 March (actual) 46,666 August 28,666 April 65,666 September 25,666 May 168,088 The large buildup in sales before and during May is due to Mother's Day. Ending inventories should be equal to 40% ofthe next month's sales in units. The necklaces cost the company $4 each. Purchases are paid for as follows: 50% in the month of purchase and the remaining 50% in the following month. All sales are on credit, with no discount, and payable within 15 days. The company has found, however, that only 20% ofa month's sales are collected by month-end. An additional 70% is collected in the following month, and the remaining 10% is collected in the second month following sale. Bad debts have been negligible. The company's monthly selling and administrative expenses are given below: Variable: Sales commissions 4% of sales Fixed: Advertising $286,868 Rent 18,886 Wages and salaries 186,868 Utilities 7,889 Insurance 3,868 Depreciation 14,888 All selling and administrative expenses are paid during the month, in cash, with the exception ofdepreciation and insurance. Insurance is paid on an annual basis, in November of each year. The company plans to purchase $16,000 in new equipment during May and $40,000 in new equipment during June; both purchases will be paid in cash. The company declares dividends of $15,000 each quarter, payable in the first month of the following quarter. The company's balance sheet at March 31 is given below: Assets Cash $ 74,868 Accounts receivable ($26,688 February sales; $328,888 March sales) 346,868 Inventory 184,868 Prepaid insurance 21,868 Fixed assets, net of depreciation 956,868 Total assets $1,495,868 Liabilities and Shareholders' Equity Accounts payable $ 186,866 Dividends payable 15,666 Comon shares 866,666 Retained earnings 586,666 Total liabilities and shareholders' equity $1,495,666 The company wants a minimum ending cash balance each month of $50,000. All borrowing is done at the beginning of the month, with any repayments made at the end of the month. The interest rate on these loans is 1% per month and must be paid at the end of each month based on the outstanding loan balance for that month. Required: Prepare a master budget for the three-month period ending June 30. Include the following detailed budgets: 1. a. A sales budget by month and in total. Budgeted sales in units Total sales Selling price per unit _ b. A schedule of expected cash collections from sales, by month and in total. KNOCKOFFS UNLIMITED Schedule of Expected Cash Collections April May June Quarter February sales March sales April sales May sales June sales Total cash collectionsc. A merchandise purchases budget in units and in dollars. Show the budget by month and in total. Budgeted sales in units Total needs Required unit purchases Required dollar purchases d. A schedule of expected cash disbursements for merchandise purchases, by month and in total. March purchases ____ 2. A cash budget. Show the budget by month and in total. (Round your intermediate calculations and nal answers to the nearest whole dollar. Also, round down your interest calculations to the next whole dollar amount. Cash deficiency, repayments and interest should be indicated by a minus sign. Do not leave any empty spaces; input a 0 wherever it is required.) Cash balance, beginning Add receipts from customers Total cash available Less disbursements: Purchase of inventory Advertising Rent Salaries and wages _ _ _ _ Sales commissions __ _ _ Utilities ____ Dividends paid __ _ _ Equipment purchaseS _ _ _ _ Total disbursements Cash balance, beginning Add receipts from customers Total cash available Less disbursements: Purchase of inventory Advertising Rent Salaries and wages Sales commissions Utilities Dividends paid Equipment purchases Total disbursements Excess (deciency) of receipts over disbursements Financing: Borrowings Repayments Interest Total nancing Cash balance, ending 3. A budgeted income statement for the three-month period ending June 30. Use the variable costing approach. KNOCKOFFS UNLIMITED Budgeted Income Statement For the Three Months Ended June 30 Variable expenses:KNOCKOFFS UNLIMITED Budgeted Income Statement For the Three Months Ended June 30 Variable expenses: Fixed expenses: