Antivi Ltd. is a small-scale contract producer of antiviral drugs. The master budget will detail each quarter's activity and the activity for the year in total. Antivi will base its 2022 budget on the following information: 1. Expected sales, in units, for the four quarters of 2022 and the first two quarters of 2023 are as follows:

2022 Q1 4,100 2022 Q2 17,500 2022 Q3 28,500 2022 Q4 37,000 2023 Q1 48,000 2023 Q2 51,000 The selling price for 2022 has been set at $52.00 per unit. Antivi's fiscal year ends on December 31. All sales are on account. 70% of sales on account are collected in the quarter of sale; 30% of sales on account are collected in the following quarter. Assume that all the balance in accounts receivable (as of 31st December, 2021) will be collected in the first quarter of 2022. Assume no bad debts are incurred. 2. Each component requires the following direct inputs: 5 milligrams (mg) of direct material available at a price of $1.60 per mg. 0.05 hours of direct labour at a rate of $45.00 per hour. Antivi has a policy of maintaining direct material ending inventory equal to 25% of direct materials needed for the next quarter's production requirements. All raw materials are purchased on account. 50% of a quarter's purchases are paid for in the quarter of purchase; the remaining in the following quarter. Antivi has a policy of keeping ending finished goods inventory equal to 30% of next quarter's forecasted sales. There is no beginning or ending work-in-process inventory. Direct labourers are paid at the end of each month. 3. Total budgeted variable overhead costs for the 2022 year (at a level of sales estimated in Item 1 above) follow: Indirect materials $31,500 Indirect labour 67,000 Employee benefits 90,520 Testing 27,000 Utilities 51,000 Total $267,020

Variable overhead is applied to components using a predetermined overhead rate based on annual direct labour hours. All variable overhead items are paid for in the quarter incurred. 4. The annual budget for fixed manufacturing overhead items follows: Supervisory salaries $203,400 Property taxes 32,500 Insurance 31,000 Maintenance 48,000 Utilities 33,000 Engineering 47,000 Depreciation 86,000 Total $480,900 All fixed overheads are paid evenly each quarter except for property taxes which are paid for in the second quarter of the year. Fixed overhead is applied to production using a predetermined overhead rate based on the estimated annual number of units produced. 5. Variable selling and administration expenses include commissions and other administrative expenses. Commissions are budgeted at 5% of sales dollars for the quarter. 70% of these commissions are paid in the quarter they incurred, while 30% are paid in the following quarter. Other variable administration costs are $2.00 per unit. These costs are paid for in the quarter they incurred. Annual fixed selling and administration expenses are as follows: Sales salaries $178,000 Administration salaries 112,000 Telecommunications 19,000 Insurance 5,500 Utilities 3,400 Depreciation 15,000 Other 2,700 Total $335,600 Fixed selling and administration expenses are paid evenly over the four quarters of the year.

8. The company's simplified balance sheet as of December 31, 2021 is as follows: Cash $55,000 Accounts Payable (1) $10,000 Accounts Receivable 7,000 Commissions Payable 5,000 Raw Material Inventory 0 Long-term Debt 250,000 Finished Goods Inventory 0 Capital Stock 1,842,000 Buildings and Equipment 2,100,000 Retained Earnings (Deficit) (250,000) Accumulated Depreciation (305,000) Total Assets $1,857,000 Total Liabilities and Shareholders' Equity $1,857,000 These balance sheet figures must be taken as given. That is, these specific December 31, 2021 balance sheet amounts override any expectations based on 2021 sales and purchase amounts. Negative balances are shown in parentheses. (1) Only used for direct materials

Required:

(1) Beginning balance sheet (classified as in Item 8) (2) Schedule of receipts