1. Katrina's Kids is concerned that the expansion of production capacity may require external sources of financing. Prepare a cash budget for the first quarter of 2007 (i.e., schedule the cash inows and outows for the quarter}. What is the amount of financing that Katrina's Kids will need to arrange? (Y on may find it useful to prepare a production schedule for the first quarter, i.e., figure out the number of units that Katrina's Kids will need to produce for the quarter). 2. Prepare a statement of budgeted cost of goods manufactured and cost of goods sold for 2007. (Again, you may find it useful to prepare a production requirements schedule first.) 3. Prepare a budgeted income statement for 2007. 4. Assume that an alternative marketing plan is to reduce the price per bracelet by $1. Sales would increase by 20 percent over the 2006 level, even without additional levels of advertising expenditures. Prepare a budgeted income statement for 2006 under this scenario