A) Abu Luqman Tire Company manufactures racing tires for bicycles, Abu Luqman sells tires for SRSO each. Abu Luqman is planning for the next year by developing a master budget by quarters. Abu Luqman's balance sheet for December 31, 2014. follows: ther data for Abu Luqman Tire Company: a. Budgeted sales are 900 tires for the first quarter and expected to increase by 100t per quarter. Cash sales are expected to be 30% of total sales, with the remaining 70 sales on account. b. Finished Goods Inventory on December 31 consists of 200 tires at SR29 each. c. Desired ending Finished Goods Inventory is 40% of the next quarter's sales; first quarter sales for 2016 are expected be 1,300 tires. FIFO inventory costing method isused. d. Direct materials cost is SR15 per tire. e. Desired ending Raw Materials Inventory is 20% of the next quarter's direct mater needed for production; desired ending inventory for December 31 is SR3,000; ind materials are insignificant and not considered for budgeting purposes