You are the manager of Everyday Sports, Inc. (ESI) Store No. 5 located in Burlington, North Carolina. ESI carries a comp

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You are the manager of Everyday Sports, Inc. (ESI) Store No. 5
located in Burlington, North Carolina. ESI carries a complete line
of outdoor recreation gear. You are to prepare the store’s master
budget for April, May, June, and July of 2022, the main selling
season. The division manager and the assistant controller (head of
the Accounting Department) will arrive from headquarters next week
to review the budget with you. The following information is needed
to complete the master budget:
Assets
Liabilities
Current assets:
Current liabilities:
Cash
15,000
$
Accounts payable
16,800
$
Accounts receivable
16,000
Salary & commissions payable
4,250
Inventory
48,000
Total liabilities
21,050
Prepaid insurance
1,800
Total current assets
80,800
Long- term assets:
Owners' Equity
78,950
Equipment & fixtures
32,000
Accumulated depreciation
(12,800)
Total building equipment
19,200
Total assets
100,000
$
Total liabilities & owners' equity
100,000
$
Everyday Sports, Inc. Store No. 5
Balance Sheet
As of March 31, 2022
April
2022
$50,000
May
2022
80,000
June
2022
60,000
July
2022
50,000
Sales are 60% cash and 40% on credit.
ESI collects all credit sales the month after the sale. The $16,000
of accounts receivable at March 31 are from credit sales in March.
Uncollectible accounts are insignificant.
ESI pays for inventory as follows: 50%
during the month of purchase and 50% during the next month.
Accounts payable consists of inventory purchases only.
Rent
expense

$2,000, paid as incurred
Depreciation expense, including new
truck
500
Insurance
expense


200 expiration of prepaid amount
Miscellaneous
expenses


5% of sales, paid as
incurred