AF 211 Fall 2010 Master Budget Final Sales Projections Wholesale Sales Price Merchandise costs Desired ending cash balance: October 38,000 November...

Prepare a Master BudgetVictoria Kite Company, a small Melbourne firm that sells kites on the web wants a master budget for the next three months, beginning January 1, 2008. It desires an ending minimum cash balance of $5,000 each month. Sales are forecasted at an average wholesale selling price of $8 per kite. In January 1, Victoria Kite is beginning Just-In-Time (JIT) deliveries from suppliers, which means that purchases equal expected sales. On January 1, purchases will cease until inventory reaches $6,000, after which time purchases will equal sales. Merchandise costs average $4 per kite. Purchases during any given month are paid in full during the following month. All sales are on credit, payable within 30 days, but experience has shown that 60% of current sales are collected in the current month, 30% in the next month, and 10% in the month thereafter. Bad debts are negligible. Monthly operating expenses are as follows:WAGES AND SALARIES