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Insurance is paid on an annual basis, in November of each year. will be...

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Accounting

Insurance is paid on an annual basis, in November of each year.
will be for cash. The company declares dividends of $24,750 each quarter, payable in the first month of the following quarter.
The company's balance sheet as of March 31 is given below:
The company maintains a minimum cash balance of $63,000. All borrowing is done at the beginning of a month; any repayments are
made at the end of a month.
The company has an agreement with a bank that allows the company to borrow in increments of $1,000 at the beginning of each
month. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. At the end
of the quarter, the company would pay the bank all of the accumulated interest on the loan and as much of the loan as possible (in
increments of $1,000), while still retaining at least $63,000 in cash.
Required:
Prepare a master budget for the three-month period ending June 30. Include the following detailed schedules:
a. A sales budget, by month and in total.
b. A schedule of expected cash collections, by month and in total.
c. A merchandise purchases budqet in units and in dollars. Show the budqet by month and in total.
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