References Moodle Workshop 2 -purchase budget assignment Please complete PARTS 1A to D. Your Workshop submission Is based on 1 - Purchase Budget and 1D - Purchase Disbursements. Once complete, you are to complete these same schedules using Excel 365 according to the process used In the textbook and problem 9-20. You are to use the formulas In Excel and not Just type In the answers. For example, If ending Inventory Is a % of next months sales, this formula should be In your Excel sheet. Pay careful attention to your total column! You are to upload your Excel work Into the Moodle Workshop tool. Next, you are required to review and mark 3 of your peers Excel assignments. You are marking thelr effective use of Excel by answering the questions In Moodle, awarding marks and providing a total. The purpose of the assignment Is to solidify your understanding of a purchases budget (helpful for your budget project) and to ensure you ALL understand the basics of Excel. Knockoffs Unlimited, a nationwide distributor of low-cost imitation designer necklaces, has an exclusive franchise on the distribution of ihe necklaces, and sales have grown so rapidly over the past few years that It has become necessary to add new members to the management team. To date, the company's budgeting practices have been inferior, and at times the company has experienced a cash shortage. You have been given responsibility for all planning and budgeting. Your first assignment is to prepare a master budget for ihe next three months, starting April 1. 'You are eager to make a favourable impression on the president and have assembled the Information below. The necklaces are sold to retailers for $10 each. Recent and forecast sales In units are as follows: January (actual) 26,508 June 63,908 February (actual) 39,008 July 43,908 March (actual) 52,608 August 41,908 April 75,008 September 33,888 May 112,008 The large buildup In sales before and during May Is due to Mother's Day. Ending Inventories should be equal to 40% of the next month's sales In units. The necklaces cost the company $4 each. Purchases are paid for as follows: 50% In the month of purchase and the remaining 50% 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 by month-end. An additional 70% Is collected In the following month, and the remaining 10% Is collected In the second month following sale. Bad debts have been negligible. The company's monthly selling and administrative expenses are given below: Variable: Sales commissions 4% of sales Fixed: Advertising $239,008 Rent 24,588 Wages and saleries 121,688 Utilities 12,283 Insurance 5,688 Depreciation 27,000 All selling and administrative expenses are pald during the month, In cash, with the exception of depreciation and Insurance. Insurance Is pald on an annual basis, in November of each year The company plans to purchase $21,200 In new equipment during May and $53,000 In new equipment during June; both purchases will be paid In cash. The company declares dividends of $17,600 each quarter, payable In the first month of the following quarter. The company's balance sheet at March 31 Is given below: Assets Cash $ 87,888 Accounts receivable ($39,008 February sales; $416,088 March sales) 455,900 Inventory 124,588 Prepaid insurance 39,280 Fixed assets, net of depreciation 1,815,938 Total assets $1,721,008 Liabilities and Shareholders? Equity Accounts payable $ 124,800 Dividends payable 17,6808 Common shares 930,000 Retained earnings 646,680 Total liabilities and shareholders' equity $1,721,008 'he company wants a minimum ending cash balance each month of $50,000. All borrowing Is done at the beginning of the month, 'ith any repayments made atthe end of the month. The Interest rate on these loans Is 1% per month and must be paid at the end of 'ach month based on the outstanding loan balance for that month. a. A sales budget by month and In total. Budgeted sales in units Selling price per unit 5 10] & 10 $ 10 Total sales $ 780,000} 1,120,000] $ 630,000] 2,530,000 b. A schedule of expected cash collections from sales, by month and in total. February sales s 3900p |S 28,000 March sales 354000f s2000f | ___ 416.000 FP 224 000 784,000 4,008,000 es SE) 39,000 416,000 il sales 156,000 546,000 78,000 780,000 126,000 Total cash collections $ 559.000/ $ 822.0001 $ 988,000) $ 2,369,000 C. A merchandise purchases budget in units and in dollars. Show the budget by month and in total. KNOCKOFFS UNLIMITED Merchandise Purchases Budget April May June Quarter Budgeted sales in units 78,000 112,000 63,000 253,000 Add: Budgeted ending inventory 44,800 25,200 17,200 17,200 Total needs 122,800 137,200 80,200 270,200 Less: Beginning inventory 31,200 44,800 25,200 31,200 Required unit purchases 91,600 92,400 55,000 239,000 Unit cost S 4 $ 4 4 4 Required dollar purchases $ 366,400 $ 369,600 220,000 S 956,000 d. A schedule of expected cash disbursements for merchandise purchases, by month and in total. KNOCKOFFS UNLIMITED Schedule of Expected Cash Disbursements April May June Quarter March purchases 124,800 124,800 April purchases 183,200 183,200 366,400 May purchases 184,800 184,800 369,600 June purchases 110,000 110,000 Total cash disbursements S 308,000 $ 368,000 $ 294,800 970,8002. A cash budget. Show the budget by month and in total. (Round your Intermediate calculations and final answers to the near whole dollar. Also, round down your Interest calculations to the next whole dollar amount. Cash deficiency, repayments and Interest should be Indicated by a minus sign. Do not leave any empty spaces; Input a 0 wherever It Is required.) KNOCKOFFS UNLIMITED Cash Budget For the Three Months Ending June 30 April May June Quarter Cash balance, beginning Add receipts from customers Total cash available 0 0 0 Less disbursements: Purchase of inventory Advertising Rent Salaries and wages Sales commissions Utilities Dividends paid Equipment purchases Total disbursements 0 0 0 Excess (deficiency) of receipts over disbursements 0 0 0 0 Financing: Borrowings Repayments Interest Total financing 0 0 0 Cash balance, ending S 0 $ 0 $ 0KNOCKOFFS UNLIMITED Budgeted Income Statement For the Three Months Ended June 30 Variable expenses: 0 0 Fixed expenses: 0 0 0KNOCKOFFS UNLIMITED Budgeted Balance Sheet June 30 Assets Total assets 0 Liabilities and Shareholders' Equity Total liabilities and shareholders' equity 0