You have been given responsibility for all planning and budgeting. Yourfirst assignment is to prepare a Master Budget for the next $12$ months starting January $1,2024.$You are anxious to make a favorable impression on the president and have assembled the information below.The company purchases the Caps from a factory in Montreal which costs the company $$5\mathrm{.}00$each $($all on account$).$ Purchases are made based on the current month$$s sales in units plus an ACCT$\_3000$ Group Project Page $2$ending inventory to equal $30\%$ of the next month's sales in units. Purchases are paid for $40\%$in the month of purchase and the remaining $60\%$ in the following month.The Caps are sold at wholesale to other resellers as well as through own stores to individualcustomers. $70\%$ of total sales, all on account are made as wholesale for $$8\mathrm{.}00$ each and $$15\mathrm{.}00$each to the individual customers in the mall stores $(30\%$ of total sales, all in cash$).$ Recent andforecasted total sales in units are as follows:Months Units Months UnitsOctober $2023$ Actual $20,000$ January $2024$ Budgeted $25,000$November $2023$ Actual $24,000$ February $2024$ Budgeted $20,000$December $2023$ Actual $26,000$ March $2024$ Budgeted $28,000$The company has found that only $40\%$ of a month's credit sales are collected in the following month,and the remaining $60\%$ is collected in the second month following the sales. Bad debts have been negligible.The company is planning to open a new store in a shopping mall in March $2024$ and expects to increase its sales by $10\%$ every month from March to July $2024$ and then decline by $10\%$ during August,September, and October $2024$ and afterward the sales will be unchanged.Opening the new store will cost the company $$40,000$ per month in advertising during February andMarch $2024.$ Furniture and Fixtures will cost $$80,000$ during February payable in $30$ days. The company is planning to buy sales equipment costing a total of $$320,000$ in February, payment in three installments starting in March and every $3$ months thereafter. The rent for the new store will be $$6,000$ a month starting in February $2024.$ A new Sales Manager will be hired at a monthly salary of $$5,000$ per month and he will start in March $2024.$ The additional costs of running the new store will be $$4,000$ per month when the store opens. To cover all the extra costs due to the new store, the president of the company decided to provide an interest$-$free loan of $$50,000$ to the company on February $1,2024,$ with the condition that the company will repay the loan in full at once whenever there is sufficient cash balance available after thebank loan is repaid.The company's monthly operating expenses are given below:Variable cost:Sales Commission $($retail stores only$)$ $$1\mathrm{.}50$ per Cap sold.Fixed Costs:Wages and Salaries $$40,000$Utilities $5,000$Insurance $1,600$Depreciation $4,000$Office rent rents, $7,000$ miscellaneous expenses $3,500$All operating expenses are paid during the month in cash. The company pays a salary of $$8,000$ each month to the owner Bobby Paul, payable on the $1$st week of next month. The company's balance sheet on December $31,2023,$ is given below: ASSETSCash $...............................................................$ $ $20,000$Accounts Receivable $($$$80,640$ from Nov. sales; $$145,600$ from Dec. Sales...... $226,240$Inventory $(7,500$ units$).........................................................37,500$Fixed Assets Net of Depreciation $..........................................250,000$Total Assets $........................................................................$ $ $533,740==========$LIABILITIES AND SHAREHOLDER$$S EQUITYAccounts Payable $..................................................................$ $ $77,100$Salaries Payable $..................................................................8,000$Capital Stock $........................................................................300,000$Retained Earnings $..................................................................148,640$Total Liabilities and Shareholders$$ Equity $......................................$ $ $533,740==========$The company maintains a policy to have a minimum ending cash balance of $$20,000$ at the end of eachmonth. It has a Line of Credit agreement with the Popular Bank of Canada that allows the company to borrow in increments of $$1,000$ at the beginning of each month, up to a total line of credit of $$100,000.$The interest rate on these loans is $1\%$ per month, and for simplicity, we will assume that interest is not compounded. Whenever possible, the company would repay the bank as much of the loan as possible $($in increments of $$1,000),$ while still retaining at least $$20,000$ in cash balance. Interest on the loan is paid only at the time of repayment of the loan and only on the repayment amount.Required: Prepare a master budget for the $12$ months from January to December, $2024.$ Create a A Budgeted Income Statement for the year ending December $31,2024$