Oui-Got Stuff is preparing its budget for the coming year. Below is information about the 2nd quarter, which is not yet finished. The following additional information is available: Budgeted Income statement for July 200x: The budgeted income statement for the 2nd quarter is: Oui-Got Stuff, Inc. Budgeted Income Statement For the 2nd Quarter Ended 200x Sales Cost of goods sold July $ 32,000 21,000 Gross profit 11,000 April $ 22,000 May $ 25,000 13,000 June $ 28,000 Less: Selling expenses Sales 4,200 Cost of goods sold 11,000 16,000 Administrative expenses 3,600 Gross profit 11,000 12,000 12,000 Total Net income 7,800 Less: Selling expenses 3,400 $3,200 2,300 3,000 Administrative expenses 2,600 3,000 3,200 1. 80% of monthly sales are on account (i.e., for credit). The remainder is for cash. 2. Credit sales are collected as follows: Total • 10% in the month of credit sales • 60% in the month following the credit sales The remainder in the 2nd month following the credit sales 4,900 6,000 6,600 Net income $6,100 $6,000 $5,400 Qui-Got Stuff has also completed the purchases budget, as follows: 3. Total budgeted sales for February are $15,000. 4. Total budgeted sales for March are $16,000. 5. Qui-Got assumes it would pay for budgeted purchases 65% in the month of purchase and Oui-Got Stuff, Inc. Purchases Budget For the 2nd Quarter Ended 200x 35% in the month following the purchase. 6. Budgeted purchases for March are $12,000. 7. For the months of April and May, the company must make a $5,000 payment for an outstanding bank note. 8. Qui-Got must maintain a cash balance of at least $4,000 at the end of each month. 9. The budgeted cash balance at April 1 is $4,500. 10. When ending cash balances are less than $4,000, they make a short-term borrowing from their local bank. However, all borrowings must be made in multiples of $100. These short- term loans are repaid at the end of the year, which is December 31st, April $ 11,000 May $ 13,000 June $ 16,000 Budgeted cost of goods sold Plus: desired ending inventory Total inventory needs Less: beginning inventory Budgeted purchases 3,250 4,000 5,250 14,250 17,000 21,250 (3,250) $ 13,750 (4,000) $ 17,250 (2,500) $ 11,750 The company needs to prepare its budgeted cash receipts, budgeted cash payments for purchases, and monthly cash budget schedules for April, May and June. Required: a. Prepare a monthly budgeted operating cash receipts schedule for the 2nd quarter, i.e. April, May, and June. b. Prepare a monthly budgeted cash disbursements schedule for purchases for April, May, and June. c. Prepare a monthly total cash budget for April, May, and June. In that schedule, show borrowings from the company's local bank as needed to maintain the minimum cash balance. (Note: In your schedules show all three months, i.e. in 3 columns, rather than preparing separate schedules for each month.)