1. Prepare a sales budget for January through May. The selling price per unit is $40.00. Use the last five digits of your student identification number to fill in the blanks on the budgeted sales in units. If your number contains a 0 use 10 instead. For example, if the last five digits in your student ID number are 14607, the budgeted sales in units would be: December of the previous year 10,000 January 40,000 February 60,000 March 100,000 April 70,000 2. Prepare a purchases budget for January through March, and the first quarter in total. Assume that the company only sells one product that can be purchased at $15.00 per unit. The market for this product is very competitive and customers highly value service such as quality and on time delivery of the product. Also assume that currently it is company policy that ending inventory should equal 50% of next months projected sales. 3. Prepare a cash budget for January through March and for the first quarter in total. The company maintains a minimum cash balance of $50,000.00, and this was the balance in the cash account on January 1. Past experience shows that 30% of sales are collected in the month of the sale, and 70% in the month following the sale. Labor cost is $15 per unit. Other expenses include $37,000 per month for rent, $4,000 for advertising, and $6,000 per month for depreciation. All costs are paid in the current month except inventory purchases, which are paid in the month following purchase (i.e. January purchases are paid in February). On January 1st there was an outstanding accounts payable balance of $100,000. The company has an open line of credit with a bank and can borrow at an annual rate of 12%. For simplification assume that all loans are made at the beginning of the month when borrowing is needed and repayments are made at the end of a month when there is enough cash to make the payment. Also, interest is only paid at the time when a repayment is made. Additionally, all loans and repayments (not the interest portion) can only be made in increments of $1000 and the company would like to pay its debts, or a portion thereof, as soon as it has enough cash to do so. 4. Prepare the Budgeted Income Statement based on the information given above. Label this budget scenario as A., 5. Repeat steps 2-4 for budget scenarios B and C using the following Desired ending inventory assumptions: Ending Inventory B. 90% C. 5%