Empco Inc manufactures high quality lamp shades that are priced somewhat higher than those sold by competitors. The shades are made of a long-lasting, stain-resistant silken material. The company's lamp shades are paired with high-end brass and crystal lamps and are featured in publications such as Architectural Digest, Town and County and the like. Empco Inc. promotes "more luxury proces than anywhere, where delivery exceeds expectations, where service is personal, and where authenticity is a priority." The company manufactures its shades year round but has a seasonal selling period. Cash budgeting is critical to the company so that inventory purchases and product manufacturing are not hampered in low sales periods. The company sells its stock on the New York Stock Exchange and has several opportunities for credit Required: Prepare the following planning budgets and schedules for the year, showing both quarterly and total figures: 1. A sales budget 2. A schedule of expected cash collections 3. A production budget 4. A direct materials budget 5. A schedule of expected cash payments for purchases of material Empco manufactures and sells a seasonal product, where maximum sales occur during the 4* quarter holiday season The selling price per shade is $500. The following information concerns operations for Year 2-the coming year-and for the first two quarters of Year 3. Year 2 Quarters Budgeted Unit Sales 1,000 3,000 2 3 4,000 4 10,000 Year 3 Quarters 1 2 2,000 1.000 Budgeted Unit Sales Other information: a. The raw material costs $100 per yard. Raw material purchases are paid for in the following pattern: 50% paid in the quarter the purchases are made, and the remaining 50% paid in the following quarter. On January 1. Year 2, the company's balance sheet showed $25,800 in accounts payable for raw material purchases, all of which will be paid for in the first quarter of the year. b. Two yards of are required to complete one lamp shade. The company requires ending raw materials inventory to equal 10% of the following quarter's production needs. On December 31, Year 1, the company had 640 yards of raw materials on hand. c. The company desires an ending finished goods inventory equal to 20% of the budgeted unit sales for the next quarter. On December 31, Year 1, the company had 100 finished units on hand. d. Sales are collected in the following pattern: 70% in the quarter the sales are made, and the remaining 30% in the following quarter. On January 1, Year 2, the company's balance sheet showed $90,000 in accounts receivable, all of which will be collected in the first quarter of the year. Bad debts are negligible and can be ignored