Bland Corporation manufacturers personal Electric Golf Carts. John McKinnon, Boland's controller is currently preparing the Company's budget for the next three months (April, May and June) of 2022. You have been asked to assist John with his task and you have gathered the following information: Sales The selling price of each golf cart is $1,200 per unit. All sales are on credit. Boland collects 40% of the credit sales during the month of sale and 58% in the month following sale. The remaining 2% in uncollectible. Actual and budgeted sales follow: February (Actual) 3,000 units March (Actual) 5,000 units April (Budgeted) 8,000 units May (Budgeted) 12.000 units June (Budgeted) 18,000 units July (Budgeted) 10,000 units August (Budgeted) 6,000 units Production Boland produces enough units each month to meet the month's sales plus a desired inventory level equal to 40% of next month's estimated sales Raw Materials The company purchases enough raw materials each month for the current month's production requirement and 30% of next month's production requirements. Each golf cart requires $550 in raw materials. Desired ending inventory of raw materials at June 30, 2022 is $858,000. Raw materials inventory on April 1 was $1,584,000. Bland pays 55% of raw materials purchases in the month of purchase and the remaining 45% in the following month. Accounts payable for purchases in March totalled $2,732,400. This account payable will be paid in April. Labour Each unit of finished product requires 4.5 hours of Direct Labour. The Direct Labour wage rate is $22 per hour. Boland also pays non-manufacturing labour each month totaling $225,000. Manufacturing Overhead Variable manufacturing overhead is 12% of the direct labour cost. Fixed overhead costs per month are as follows: Factory Supervisor Salary $25,000 Factor Insurance $3.000 Factory Rent Depreciation Factory $28,000 $15.000 Selling and Administrative Expenses Variable selling and administrative expenses consist of $25/unit for shipping plus 3% of sales for commissions Fixed selling and administrative expenses per month are as follow. Variable manufacturing overhead is 12% of the direct labour cost. Fixed overhead costs per month are as follows: Factory Supervisor Salary $25,000 Factory Insurance $3,000 Factory Rent $28.000 Depreciation Factory $15.000 Selling and Administrative Expenses Variable selling and administrative expenses consist of $25/unit for shipping plus 3% of sales for commissions. Fixed selling and administrative expenses per month are as follows: Advertising $3,500 Depreciation $12,000 Insurance $4.500 Salaries $34.000 Other $16.000 Other Items The cash balance on April 1 is $34,000 Bland will acquire Equipment costing $260,000 in April and $1,535,000 in May. Dividends of $2,500,000 will be paid in June All purchases and expenses other than depreciation are paid in cash in the month incurred All borrowings occur at the beginning of the month and all repayments occur at the end of the month. All Borrowings are in increments of $1,000. Annual interest rate is 4%. A minimum cash balance of $30,000 is required Boland has available a $1,000,000 line of credit through their Corporate Banking relationship with TD bank. Prepare the following budgets for each of the three months: 1. Cash budget (explanation)