Creative Shirts, Inc., produces T-shirts. The Company's fiscal year ends on December 31. information to be used for the operating budget for 2016 follows. Average sales price for each T-shirt is estimated to be $22. Unit sales for this coming year, ending December 31, are expected to be as follows: Finished goods inventory is maintained at a level equal to 20 percent of the next quarter's sales. Finished goods inventory at the end of the fourth quarter of 2015 is estimated to be 4,000 units. Each unit of product requires 2 yards of direct materials, at a cost of $3 per yard. Management prefers to maintain ending raw materials inventory equal to 30 percent of next quarter's materials needed in production. Raw materials inventory at the end of the fourth quarter 2015 is estimated to be 13,300 yards. Each unit of product requires 0.5 direct labor hours at a cost of $13 per hour. Variable manufacturing overhead costs are: Indirect materials $0.70 per unit Indirect labor $0.90 per unit Other $0.50 per unit Fixed manufacturing overhead costs per quarter are Salaries $18,000 Other $20,000 Depreciation $11,950 Management estimates all selling and administrative costs are fixed. Quarterly selling and administrative cost estimates for 2016 are Salaries $15,000 Rent $5,000 Advertising $ 4,000 Depreciation $ 9,000 other $10,000 All sales are made on credit. The company expects to collect 70 percent of sales in the quarter of sale and 30 percent the quarter following the sale. Accounts receivable at the end of 2015 will total $80,000, all of which will be collected during the first quarter 2016. All direct materials purchases are on credit. The company expects to pay 80 percent of purchases in the quarter of purchase and 20 percent the following quarter. Accounts payable at the end of 2015 will be $25,000, all of which will be paid during the first quarter of 2016. The cash balance at the beginning of 2016 is expected to be $70,000. Prepare the quarterly sales and production-related (including purchases) budgets for quarters 1-3 of 2016. Prepare a quarterly budgeted income statement using the contribution margin format for quarters 1-3 of 2016. Prepare a quarterly cash budget for quarters 1-3 of 2016