Problems 1.) 1. Jimi, Inc., is preparing its master budget for the quarter ended December 31. It sells a single product for $55 each. Seventy percent of all sales are on credit. Cash is paid for the remaining sales. All credit sales are collected in the month following the sale. The balance in accounts receivable is $12,000 on September 30, which represents the uncollected balance on September's sales. Budgeted sales for the next four months follow: Oct. Nov Dec Jan Sales Units 980 1200 850 1 190 The unit cost is $30. The company prefers an ending inventory is 55% of the following month's sales. September's inventory is 480 units. Jimi, Inc. pay for 60% of the current month's purchases and 40% in the following month. The A/P balance on September 30 is $9.800, which represents unpaid purchases. Monthly operating expenses: Commissions (10% of sales) Shipping (4.2% of sales) Office salaries (5750 per week - assume each month has 4 weeks) Rent (5,000 per month) Depreciation is $3,300 per month. Income taxes are 40% and will be paid on January 31. There are $2500 in taxes payable on December 31. The company requires $10,000 minimum monthly cash balance. The cash balance as of September 30 is $10,000. Loans are obtained at the end of any month when the minimum cash balance is not met. Interest is 3% per month based on the beginning of the month loan balance and is paid at the end of each month. If the monthly ending cash balance is over $10,000, loans are repaid at the end of the month. As of September 30, the loan balance is $900. Prepare a master budget (round all dollar amounts to the nearest whole dollar) for each of the months of October, November, and December include the (20 pts): Sales budget - Cash receipts budget Inventory purchases budget Table of cash payments for purchases of merchandise Miscellaneous expense budget - Cash budget, including information on the loan balance - Budgeted income statement