Required:
Prepare a master budget for the three-month period ending June 30. Include the following detailed budgets:
• 1.
o a. A sales budget, by month and in total.
o b. A schedule of expected cash collections from sales, by month and in total.
o c. A merchandise purchases budget in units and in dollars. Show the budget by month and in total.
o d. A schedule of expected cash disbursements for merchandise purchases, by month and in total.
• 2. A cash budget. Show the budget by month and in total. Determine any borrowing that would be needed to maintain the minimum cash balance of $50,000.
• 3. A budgeted income statement for the three-month period ending June 30. Use the contribution approach.
• 4. A budgeted balance sheet as of June 30.