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  3. three months. hanson believes short-term interest

three months. Hanson believes short-term interest rates will be 10 percent per year at the...

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Accounting

three months. Hanson believes short-term interest rates will be 10 percent per year at the time of the equipment
purchases. If a loan is necessary, Davies-Lowry has decided it should be paid off by the end of the first quarter if
possible.
Intercoastal's board of directors has indicated an intention to declare and pay dividends of $75,000 on the last day of
each quarter.
The interest on any short-term borrowing will be paid when the loan is repaid. Interest on Intercoastal's bonds is paid
semiannually on January 31 and July 31 for the preceding six-month period.
Property taxes are paid semiannually on February 28 and August 31 for the preceding six-month period.
Required:
Prepare Intercoastal Electronics Company's master budget for the first quarter of 201 by completing the following
schedules and statements.
Problem 9-44 Part 7
Prepare Intercoastal Electronics' budgeted income statement for the first quarter of 20x1.(Ignore income taxes.)
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