a$)$ Beginning Balance Sheet as given on the last page of this assignment. b$)$ Sales Budget for each quarter of the year; include a column for the year. c$)$ Production Budget for each quarter of the year; include a column for the year. d$)$ Direct Materials Budget for each quarter of the year; include a column for the year. e$)$ Direct Labour Budget for each quarter of the year; include a column for the year. f$)$ Manufacturing Overhead Budget for each quarter of the year; include a column for the year. g$)$ Ending Finished Goods Inventory Budget for the year. h$)$ Selling and Administrative Expense Budget for each quarter of the year; include a column for the year. Be sure to separate out variable and fixed expenses. i$)$ Cash Budget for each quarter of the year; include a column for the year. Make sure you include all the required financing. j$)$ Cost of Goods Manufactured Budget for the year. k$)$ Cost of Goods Sold Budget for the year. l$)$ Budgeted Income Statement for the year. m$)$ Budgeted Balance$-$Sheet as of the end of the year. Optima Corporation, which started its operations in February $2021,$ produces and sells a unique tablet containing many security features for commercial use $($called Commercial device$).$ Starting July $2025,$ it plans to sell a similar $($but not the same$)$ device that individuals can buy for personal use $($called Personal device$).$ Optima$$s accounting system has focussed on tracking historical accounting data. Krista Carlson, Optima$$s controller, is considering implementing a budgeting system and is requesting your help in preparing a master budget for the year $2025.$ The budget will detail each quarters activity and the activity for the year in total. Use the following information: $1.$ Expected sales, in units, for $2025$ are as follows: Commercial Device Personal Device The selling price is $$800$ per unit for the Commercial device and $$520$ per unit for the Q$42024($actual$)$ Q$12025$ Q$22025$ Q$32025$ Q$4202555,00065,00070,00075,00090,000---12,00015,000$ Personal device. All sales are credit sales. Sixty percent of a quarters credit sales are collected in the quarter of sale; the remaining $40\%$ are collected in the quarter following sale. Due to very stringent management of receivables, there are no bad debts. $2.$ There is no beginning inventory of finished goods. Optima is planning the following ending finished goods inventories $($in units$)$ for each quarter: Commercial Device Personal Device $3.$ Each Commercial device uses $6\mathrm{.}0$ hours of direct labour and $4\mathrm{.}0$ units of direct materials, whereas each Personal device uses $5\mathrm{.}0$ hours of direct labour and $3\mathrm{.}0$ units of direct materials. Direct labour wages are $$20$ per hour, and one unit of direct materials costs $$90.4.$ There are $65,700$ units of direct materials in inventory as of December $31,2024.$ At the end of each quarter, Optima plans to have $20\%$ of the direct materials required for next quarters production. Optima will end the year with the same quantity of direct materials $($in units$)$ as at the start of the year. $5.$ Optima buys direct materials on account. Half of the purchases are paid for in the quarter of the purchase and the remaining half in the next quarter. $6.$ Wages and salaries are paid in full by the end of each month. $7.$ For the first two quarters, fixed manufacturing overhead will total $$3$ million each quarter and will increase to $$3\mathrm{.}4$ million per quarter thereafter. Included in the fixed overhead is depreciation which amounts to $$400,000$ per quarter in the first two quarters and $$800,000$ per quarter thereafter. Overhead expenses are paid for in the quarter incurred. Fixed overhead is to be allocated to production using a predetermined overhead rate based on direct labour hours. $8.$ Variable manufacturing overhead is budgeted at $$15$ per labour hour. All variable overhead expenses are paid for in the quarter incurred. $9.$ Fixed selling and administrative $($S&A$)$ expenses total $$1,750,000$ per quarter in the first two quarters and increase to $$2,370,000$ per quarter thereafter. Included in the S&A expenses is $$250,000$ of depreciation per quarter. Variable S&A expenses are budgeted at $$15$ per unit sold. All S&A expenses are paid for in the quarter incurred. $10.$ The balance sheet, as of December $31,2024$ is as follows: Q$12025$ Q$22025$ Q$32025$ Q$4202513,00015,00020,00010,000--3,5002,000$ Optima Corporation Balance Sheet For the year ended December $31,2024$ Assets Current Assets: Cash Accounts receivable Inventory $(65,700$ units of raw materials$)$ Total current assets Property and Equipment: Land Buidlings and equipment, net Total property and equipment Total Assets $ $5,288,750$ $ $3,300,000$ $ $5,256,000$ $ $13,844,750$ $ $1,750,000$ $ $33,500,000$ $ $35,250,000$ $ $49,094,750$ Liabilities and Shareholders' Equity Current liabilities: Accounts payable income tax payable Loans payable Total current liabilities Long$-$term liabilities Loans payable Shareholders' Equity Common shares Retained earnings Total$$