MPQ Corporation is in the process of assembling its budget for the quarter ending March 31. Please see the following sales data: Sales Price = $28 per unit January Sales In Units = 1,650 February Sales In Units = 1,400 March Sales In Units = 1,550 Budgeted sales are 30% cash and 70% credit Accounts Receivable, December 31 is $14,000. The $14,000 represents the uncollected portion of December sales. The company prefers inventory equal to 27% of the net month’s sales in units. The December 31 balance of inventory is 480 units. The cost of inventory is $12 per unit. 35% of the purchases are paid in the month of purchase and 57% are paid in the subsequent month. At December 31, the Accounts Payable balance is $6,800. The $6,800 represents the purchases unpaid in December. Miscellaneous Expenses are paid within the month incurred. These expenses consist of the following: Freight - 3% of Sales Sales Commissions - 8% of Sales Lease on Factory - $3,750 Salaries (Office) - $2,200 per month Please review the additional data below: Depreciation Expense = $3,850 per month Income Tax Rate = 38% (Income Taxes are paid on 4/1/2019 and 12/31/2019) The company desires to keep a minimal $10,000 cash balance Cash Balance, December 31 is $9,800 If there is a cash shortage, a loan is taken out to compensate at the end of the month. The interest on the loan is .8% per month, calculated from the beginning of the month balance on the loan. The interest must be paid each month. Please round to the nearest whole dollar. There is more cash than the minimum required, the additional amount is applied to paying down the debt. At December 31 there is not a balance on the loan. Instructions Prepare a master budget for each of the first three months during the calendar fiscal year. The master budget will include the following: Sales Budget Schedule of Cash Receipts Merchandise Purchases Budget Schedule of Cash Disbursements for Merchandise Purchases Schedule of Cash Disbursements for Selling and Administrative Expenses Cash Budget, including information on the loan balance Budgeted income statement for the quarter