Problem $9-20($Static$)$ Completing a Master Budget $[$LO$2]$

The following data relate to the second quarter operations of Leisure Sports, a wholesale distributor of consumer sporting goods, as of March $31$:

Cash$$9,000$Accounts receivable$48,000$Inventory$12,600$Building and equipment, net$214,100$Accounts payable$18,300$Common shares$190,000$Retained earnings$75,400$

Actual sales for March and budgeted sales for April through July are as follows:

March $($actual$)$$$60,000$April$70,000$May$85,000$June$90,000$July$50,000$

Sales are $20\%$ cash and $80\%$ credit. Credit sales are collected in the month following sale. The accounts receivable at March $31$ are a result of March credit sales.

The company$$s gross margin is $40\%$ of sales.

Monthly expenses are as follows: salaries and wages $$7,500$ per month; shipping, $6\%$ of sales; advertising, $$6,000$ per month; other expenses, $4\%$ of sales. Depreciation, including depreciation on new assets acquired during the quarter, will be $$6,000$ in total for the quarter.

Each month$$s ending inventory should equal $30\%$ of the following month$$s cost of goods sold.

One$-$half of a month$$s inventory purchases is paid for in the month of purchase; the other half is paid for in the following month.

Equipment costing $$11,500$ will be purchased for cash in April and $$3,000$ will be purchased for cash in May.

Dividends of $$3,500$ will be declared and paid in June.

The company must maintain a minimum cash balance of $$8,000.$ An open line of credit is available at a local bank. All borrowing is done at the beginning of a month, and all repayments are made at$$the end of a month. The monthly interest rate is $1\%.$ Interest must be paid at the end of each month based on the total loans outstanding for that month.

Required:

Using the data above, complete the following:

This question was previously asked$/$answered however there are a few questions where the answer that has been given does not make snese and$/$or does not line up with the chart that we are given. Question $6$ was also not answered. Can I please have further clarification for questions number $2-$b$.,4,5,6.2-$b$.$ Schedule of expected cash disbursements$-$Merchandise purchases:

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline & April & May & June & Quarter $\backslash \backslash$

$\backslash$hline March purchases & $\backslash$$ $18,300$ & & & $\backslash$$ $18,300\backslash \backslash$

$\backslash$hline April purchases & $22,350$ & $22,350$ & & $44,700\backslash \backslash$

$\backslash$hline May purchases & & $25,950$ & $\backslash$$ $25,950$ & $51,900\backslash \backslash$

$\backslash$hline June purchases & & & $23,400$ & $23,400\backslash \backslash$

$\backslash$hline Total disbursements & $\backslash$$ $40,650$ & $\backslash$$ $48,300$ & $\backslash$$ $49,350$ & $\backslash$$ $138,300\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

$3.$ Schedule of expected cash disbursements$-$Selling and administrative expenses:

$4.$ Cash budget:

Note: Round your intermediate calculations and final answers to the nearest whole dollar. Also, round up your interest calculations to the next whole dollar amount. Cash deficiency, repayments and interest should be indicated by a minus sign.

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline Cash Budget & $\backslash$multicolumn$\{2\}\{|$c$|\}\{$April$\}$ & $\backslash$multicolumn$\{2\}\{|$c$|\}\{$May$\}$ & $\backslash$multicolumn$\{2\}\{|$c$|\}\{$June$\}$ & $\backslash$multicolumn$\{2\}\{|$r$|\}\{$Quarter$\}\backslash \backslash$

$\backslash$hline Cash balance, beginning & $\backslash$$ & $9,000$ & $\backslash$$ & $8,350$ & $\backslash$$ & $8,050$ & $\backslash$$ & $9,000\backslash \backslash$

$\backslash$hline Add cash collections & & $62,000$ & & $73,000$ & & $86,000$ & & $221,000\backslash \backslash$

$\backslash$hline Total cash available & & $71,000$ & & $81,350$ & & $94,050$ & & $230,000\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{9\}\{|$l$|\}\{$Less cash disbursements:$\}\backslash \backslash$

$\backslash$hline For inventory purchases & & $40,650$ & & $48,300$ & & & & $88,950\backslash \backslash$

$\backslash$hline For selling and administrative expenses & & $20,500$ & & $22,000$ & & & & $42,500\backslash \backslash$

$\backslash$hline For equipment purchases & & $11,500$ & & $3,000$ & & & & $14,500\backslash \backslash$

$\backslash$hline For dividend payments & & $0$ & & & & & & $0\backslash \backslash$

$\backslash$hline Total cash disbursements & & $72,650$ & & $73,300$ & & & & $145,950\backslash \backslash$

$\backslash$hline Excess $($deficiency$)$ of cash & & $\backslash ((1,650)\backslash )$ & & $8,050$ & & $94,050$ & & $84,050\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{9\}\{|$l$|\}\{$Financing:$\}\backslash \backslash$

$\backslash$hline Borrowings & & & & & & & & $0\backslash \backslash$

$\backslash$hline Repayments & & & & & & & & $0\backslash \backslash$

$\backslash$hline Interest & & & & & & & & $0\backslash \backslash$

$\backslash$hline Total financing & & $0$ & & $0$ & & $0$ & & $0\backslash \backslash$

$\backslash$hline Cash balance, ending & $\backslash$$ & $(1,650)$ & $\backslash$$ & $8,050$ & $\backslash$$ & $94,050$ & $\backslash$$ & $84,050\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}5.$ Prepare an absorption costing income statement for the quarter ended June $30.$

$6.$ Prepare a balance sheet as of June $30.$