Create a Sales, Production, Direct Materials, Direct Labor Budget, MOH, S&A and Cash Budget for the Months January - March 1. At January 1, 2020, Arrant, Inc. is creating their annual budget. They had 1000 step stools on hand. Its policy is to maintain an ending inventory equal to 15% of units needed for the next month's sales. Arrant Co. estimates it will sell 8,000 stools during the first month of 2020 with a 5% increase in sales each subsequent month. Each stool is sold for $16. Each Stool requires 0.25 yards of wood. At the end of each month, Arrant desires to have 20 percent of production material needs required for the next month on hand. The wood costs $12.50 per yard. They started with 400 yards of wood. Each stool produced requires 15 minutes of direct labor and Arrant pays its labor $15 per hour. Arrant Receives 50% of it sales in cash in the month it was sold, 35% in the following month and 15% 2 months after. Nov 2019 Sales was 110,000 and Dec 2019 was 112,000 Arrant Pays its suppliers 25% in the month it order materials, 75% in the following month. On Jean 1 they still owed $15,000 from Dec. Arrant MOH has a VC of $4 per DLH and a FC of 25,000 of which $5000 is depreciation Arrant has Sales and Admin costs are $1.50VC per stool and $15,000 FC of which $2000 is depreciation In February they plan to buy a $45,000 piece of equipment for cash. On Jan 1 they had $20,000 and want to keep a minimum balance of $10,000. Arrant has a line of credit it can use if they need cash the APR is 12% and they borrow on the 1" day of the month and payoff their loans on the last day of the month. Interest must be paid monthly. They borrow in $1000 increments