2 The product has a current cost price of $25.00. The inventory policy of Ringwood Traders is to maintain stock levels to 20% of the following quarter's sales. Purchases of stock are made on credit and paid in the month they are incurred. The selling price will be $45.00 for the first quarter. It will rise on the 1st April in line with the purchase price increase. It is estimated that 15% of the sales are cash and the rest is for credit. All credit sales are expected to be collected in the month following the sale. 4 Equipment will be depreciated at 15% on book value. 5 John Firefly will withdraw $4,000 per month. 6 The following expenses have been paid each quarter: Wages $30,000 Telephone $340 Delivery Fees $600 7 It is estimated that accrued wages at the end of each quarter will be $2,400. 8 Commission of 3% of the sales value for the quarter is to be paid. 9 The rent is $24,000 p.a. and is paid every 1st October.John Firefly, proprietor of Ringwood Traders, has asked your assistance in preparing his budgets for 2023. He has provided the following information: Ringwood Traders Balance Sheet as at 31 December 2022 ASSETS LIABILITIES Cash 4,000 Accrued Wages 1,200 Accounts receivable 20,000 Inventory 20,000 OWNERS EQUITY Rent Prepaid 18,000 Capital - Firefly 100,800 Equipment (book Value) 40,000 102,000 102,000 H John expects to sell the following amounts for the three (3) months ending 31st March 2023: Months I Units January 1,200 February 1,500 March 1,300 Estimated sales for the quarter ending June 2023 = 3750 units.Required Prepare budgets for the quarters ending 31st March 2023, for Ringwood Traders as follows: a) Sales Budget b) Purchases Budget c) Cost of Goods Sold Budget d) Income Statement (Profit and Loss) Budget e) Budgeted Balance Sheet f) Cash Budget Round all figures to the nearest dollar