Part 1 relates to Module 22 have a template set up on the Part2BudgetSolution worksheet that you should use to compete the requred tudgets You need to use cell references in the development of your budgets You must use this worksheet to reference the data that is being inputted onto the budgets on the budget worksheet "you type in any numbers in the solution, l wil take off 50%ofthe total points for this part since we use Excel so that we can You should use this worksheet as your data field and only use cel references and formulas in your budgets Your grade wil be based on accuracy of your solution and correct usage of excel The budget worksheet has to rmatted budgets for you The beauty behind excel is that managers can perform what-if anslysis just by changing the data, so you do not nesed to retyps the have used cell references and formulas throughout First Store prepares budgets quarterly. The following nformation is availsble for use in planning the secord quarter budgets for 2019 First Store Balance Sheet March 31, 2019 Liabilities Assets Cash Accounts receivable nventory Prepaid insurance Net Fxtures 3 3,000 25,000 30,000 2,000 25.000 Accounts payable Dividends payable Total Liabiities 31030 Stockholders Equity5 Common Stock Retained Earrings Tatal iabiities and Stockholders' equity B5DO Total Assets ut Actual and forecasted sales for selected manths in 2019 are as follows Sales Revenue Month January February March April May June July $ 60,000 50,000 40,000 50,000 60,000 70 000 90,000 Manthly operating expenses are as follows, but note you wil need to compute the monthly insurance expense Wages and salaries Depreciation Utisties Rent $ 25,000 100 1,000 2 000 Cash dividends are declared during the third month of each quarter and are paid during the first month af the folowing quarter5 r Operating expenses, except insurance and depreciation are paid monthly The prepaid insurance is for five more months Cost of goods sold is equal to 50% of sales revenue in month of sale Ending Inventories are sufficient for Purchases duning any given month for merchandise are paid in full during the following month All sales are on account. 120% of next month's cost of sales 50% colected duing month of sale 40% collected anne the next month after sale 10% collected the second month after sale $1,000 at an moual interest rate of 3,000 at beginning of each morth Money can be borrowed and repaid in mubple af 12% The company requres a minimum cash balance o At the time the principal is repaid, interest is pard on the portion of principal that is repaid All borrowing is at the beginning of the manth, and al repayment is at the end of the month Therefore, interest is incurred the month of the borrowing and thereafter until paid at the end af the month when there is sufficient funds Required: Prepare and answer the following budgets and questions on the Part1 BudgetSolution Worksheet. Make sure you u Please note that the quarter total column does not necessarily mean you total a row. When there are beginning and ending ba For example, please review Exhibit 22.5 purchase budget page 22-10 the desired ending inventory and beginning inventory qu Round to the nearest dollar. 1 Prepare a purchase budget for each month af the second quarter ending June 30, 2019 along with a quarter column. 2. Prepare a cash receipts schedule for each month of the second quarter ending June 30, 2019 along with a quarter column. Do nct in 3 Prepare a cash disbursements schedule for each month of the second quarier ending June 30, 2019 long with quarter column Do m 4. Prepare a cash budget for each month of the second quarter ending June 30, 2019 Include budgeted borrowings and repayments if 5. Prepare a budgeted income statement for each month of the second quarter ending June 30, 2019 aiang wih a quarter colum 6 Prepare a budgeted balance sheet as of June 30, 2019 7 what the company is able to decrease the annual interest rate on loans to 10%. Which budgets a ll charge and what wil te hr You shouid only have to change the annual interest rate on this worksheet and all the appropriate budgets wil change on the solution w set up your cel references correcty Please make sure you return the annual interest rate back to the ariginal percentage before you sbn