Frapp Delicious Ltd was established in 2018, it produces premium ice lollies using only natural ingredients. The companys business is highly seasonal, with most of the sales occurring in summertime. Prior to 2020 its business had been smooth until a major cash crunch in 2020 and 2021 when the COVID-19 disease spread across the world, that almost forced the company into bankruptcy.

After that event, having realized the role of budgeting in organization, Greenspan the owner and CEO of the company decided to carry out the practice of budgets preparation within his company. And as the newly hired CFO, you are assigned this important task of preparing budgets for the next fiscal year beginning January 1^st, 2022.

With the assistance of your staff and people from other departments, you have gathered following necessary information for the preparation of budgets.

Sales data

The budgeting team led by you comes up with following estimations of sales for the next year (Year 2022):

	Quarter 1	Quarter 2	Quarter 3	Quarter 4	2023 1st Q 8
Sales in cases	12,000	36,000	48,000	24,000	18,000

Selling price per case is predicted at $20 throughout the next year and during the first quarter of 2023.

At Frapp Delicious Ltd, all sales are on credit; furthermore, experience has shown that 70% of sales are collected in the quarter in which the sale is made and the remaining 30% are collected in the following quarter.

Production data

The experience shows that company needs to have a level of ending finished goods inventory equal to 20% of the next quarters sales to ensure the continuity of sales. The desired ending inventory of finished goods on December 31, 2022 is 3,600 cases (20 % of estimated 2023s first quarter sales of 18,000 cases).

And the company has no W.I.P, all products are started and completed during the quarter of production.

1. On spreadsheet, prepare all the relevant budgets for the next fiscal year 2022, including:
   1. Sales budget
   2. Production budget