Please answer this question using the given data. It is a very simple budgeting question. If you are unable to answer all, in that case at least answer 1 and show working:

Crowne store has the following sales revenue data available on April 1.

Feb $299,000 (actual)

Mar $286,000 (actual)

April $312,000 (budgeted)

May $286,000 (budgeted)

June $299,000 (budgeted)

July $312,000 (budgeted)

Aug $338,000 (budgeted)

Store sells 60% on account and the remaining on cash. The collection pattern of the receivable are as follows:

60% collected in the month of sale

30% collected in the following month

9% collected in the second month following the sale

1% uncollectible bad debt

All items are sold at a price of $10 per unit. Inventory levels in units at the end of each month should be equal to the next month sales needs. Units cost around 65% of sales price. All purchases of inventory in a month are paid in the following month. Other expenses are budgeted as follows:

FIXED $65,000 per month, which includes $15,600 of depreciation

Variable 10% of sales revenue

All these expenses are paid in the month incurred

The balance sheet accounts balance on 3/31 are as follows:

Cash $104,000

Accounts receivable (net of uncollectible) $138,450

Inventory $295,750

Fixed assets (net of accumulated depreciation) $390,000

Accounts payable (from inventory purchase) $194,350

Common stock $260,000

Retained earnings $473,850

Company budgets to pay $80,000 of dividend on 6/30

REQUIRED:

Hint: you need to calculate the sales units for each month.

1. A schedule of cash collection for each month of quarter 2

2. A schedule of inventory purchases for each month of quarter 2

3. A schedule of cash payments for each month of quarter 2.

4. A cash budget for each month of quarter 2.

5. Budgeted income statement for the period ending quarter 2

6. Balance sheet as of June 30