1. Prepare Trolley's operating budget and cash budget for 2025 by quarter. Required schedules and budgets include: sales budget, production budget, direct materials budget, direct labor budget, manufacturing overhead budget, cost of goods sold budget, selling and administrative expense budget, schedule of cash receipts, schedule of cash payments, and cash budget. Manufacturing overhead costs are allocated based on direct labor hours. (Round all calculations to the nearest dollar.) 2. Prepare Trolley's annual financial budget for 2025, including budgeted income statement and budgeted balance sheet. 3. Trolley sold 7,000 sets in 2025, and its actual operating income was as follows: Trolley Toy Company Income Statement For the Year Ended December 31, 2025 Net Sales Revenue 630,000 Cost of Goods Sold: Variable Fixed Gross Profit 94,890 36,540 131,430 498,570 Selling and Administrative Expenses: Variable 12,600 Fixed 61,400 74,000 Operating Income 424,570 Other Income and (Expenses): Interest Expense Income Before Income Taxes Income Tax Expense Net Income (425) 424,145 22,000 402,145