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9:17 PM Sun Dec 9 a chegg.com should be indicated by a minus sign.) Cash Budget For the Three Months Ending June 30 Beginning cash balance Add collections from customers Total cash available Less cash disbursements S 82, 632 1.233 2.861 14,800 995,400 1233.4002,861,600 Merchandise purchases 301 991.200 Rent 26 122 28 37 20 Dividends paid Total cash disbursements Exoess (deficiency) of cash available over disbursements 68,000 21,000 16376 2,520.288 41,312 98,736 (83,938) 905.176 90,224 17,024 142.000 142,000 (142,000) Total financing Ending cash balance 142,000 (142,000) $ 58.064S90.224 275024S 341.312 3. A budgeted income statement for the three-month period ending June 30. Use the contribution approach Budgeted Income Statement For the Three Months Ended June 30 Variabe expenses Fxed expenses . A budgeted balance sheet as of June 30 Budgeted Balance Sheet June 30 Total assets Liablities and Stockholders' Equity 9:17 PM Sun Dec 9 a chegg.com Blackboard Learn You Have Just Been Hired As A New Managemen.. Case for Chapter S Question: You have just been hired as a new management trainee by Post a question nswars from our cxperts for your tough Enter question You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to varous retail outlets located in shopping malls across the country. In the past, the company has done very itte in the way of budgeting and at certain times of the year has experienced a shortage of cash. Continue to post Since you are well trained in budgeting, you have decided to prepare comprehensive budgets for the upcoming second quarter in order to show management the benefits that can be gained from an integrated budgeting program. To this end, you have workked with accounting and other areas o gather the information assembled below. 4 questions remairing The company sells many styles of earings, but al are sold for the same price-$14 per pair Actual sales of earrings for the last three months and budgeted sales for the next six months ollow (in pairs of earings): My Textbook Solutions January (actual) February (actual) March (actual) April (budget) May (budget) 21,600 June (budget) 27,800 July (budget) 1,500 August (budget) 68,600 September (budget) 101,600 31,600 29.600 26,600 The concentration of sales before and during May is due to Mother's Day. Sufficient inventory should be on hand at the end of each month to supply 40% of the earrings sold in the following Sth Ecition Sth Edition 13th Edition View all solutions Suppliers are paid $4.8 for a pair of earrings. One-half of a month's purchases is paid for in the month of purchase; the other half is paid for 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% of a month's sales are collected in the month of sale. An additional 70% is collected in the following month, and the remaining 10% is collected in the second month following sale. Bad debts have Accounting Chegg tutors who can help right now been Monthly operating expenses for the company are given below Joey D Tennessee Technolo... 4% of sales Fixed $ 280,000 $ 26,000 122,000 S 11,000 S 3,800 22,000 Mohit G CA Ublities H. Stovens Insitute of T... Insurance is paid on an annual basis, in November of each year Find me a tutor The company plans to purchase $20,000 in new equipment during May and $48,000 in new equipment during June; both purchases ill be for cash. The company declares dividends of 21,000 each quarter, payable in the first month of the following quarter A listing of the company's ledger accounts as of March 31 is glven below S 82,000 504 560 127,872 Accounts redeivable (S38,640 February sales:$465,920 March sales) 25,000 Proparty and equipment (net) Total assets S1,769432 Liabilities and Stockholders' Equity Accounts payable Dividands payable Common stock Retained eamings Total liabilicies and stockholders' equity S 108,000 21,000 960,000 680 432 S1.769.432 The company maintains a minimum cash balance of $58,000. All borrowing is done at the beginning of a month any repayments are made at the end of a month The company has an agreement with a bank that allows the company to borrow in increments of $1,000 at the beginning of each month. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. At the end of the quarter, the company would pay the bank all of the accumulated interest on the loan and as much of the loan as possible (in increments of $1,000), while stil retaining at least $58,000 in cash. Required: 1. Prepare a master budget for the three-month period ending June 30. Include the follawing detailed budgets a. A sales budget, by month and in total