I did my best to provide all the information I have. Just need the blank green shaded boxes answered with formulas please. 

\Chapter 9Master Budget Case: PetWorks Ltd PetWorks Ltd. is a company that manufactures and sells a single product, which theycall a Zoodle. For planning and control purposes they utilize a monthly masterbudget, which is usually developed at least six months in advance of the budgetyear. Their fiscal year end is December 31. During the summer of 2024, Bill Leigh, the PetWorks controller, spent considerabletime with Lynn Frazer, the Manager of Marketing, putting together a sales forecastfor the next budget year (January to December 2025). Unfortunately, theircollaboration worked so well they eloped to the Bahamas, were married, and settleddown somewhere in the Caribbean. Prior to their departure they e-mailed letters ofresignation and a cryptic sales forecast to the President of PetWorks. Their salesforecast consisted of these few lines: « For the year ended December 31, 2024: 475 000 units at $10.00 each*= For the year ended December 31, 2025: 500,000 units at $10.00 each= For the year ended December 31, 2026 500,000 units at $10.00 each *Expected sales for the year ended December 31, 2024, are based on actual salesto date and budgeted sales for the duration of the year. PetWorks' President felt certain that the marriage wouldn't last, and expected Billwould be back any day. But the end of the year is quickly approaching, and there isstill no word from the desert. The President, desperately needing the budgetcompleted, has approached you, a management accounting student, for help inpreparing the budget for the coming fiscal year. Your conversations with thepresident and your investigations of the company's records have revealed thefollowing information: 1. Peak months for sales correspond with gift-giving holidays. History shows thatJanuary, March, May, and June are the slowest months with only 1% of sales foreach month. Sales pick up over the summer with July, August, and September eachcontributing 2% to the total. Valentine's Day in February boosts sales to 5%, andEaster in April accounts for 10%. As Christmas shopping picks up momentum, wintersales start at 15% in October, move to 20% in November and then peak at 40% inDecember. This pattern of sales is not expected to change in the next two years. 2. From previous experience, management has determined that an ending inventoryequal to 25% of the next month's sales is required to fit the buyer's demands. 3. Because sales are seasonal, PetWorks must rent an additional storage facilityfrom September to December to house the additional inventory on hand. The onlyrelated cost is a flat $20,000 per month, payable at the beginning of the month. 4. There is only one type of raw material used in the production of Zoodles. Space-age acrylic (SAA) is a very compact material that is purchased in powder form. EachZoodle requires 5 kilograms of SAA, at a cost of $0.45 per kilogram. The supplier ofSAA tends to be somewhat erratic, so PetWorks finds it necessary to maintain aninventory balance equal to 40% of the following month's production needs as aprecaution against stock-outs. PetWorks pays for 20% of a month's purchases in themonth of purchase, 45% in the following month and the remaining 35% two monthsafter the month of purchase. There is no early payment discount 5. Beginning accounts payable will consist of $208,406.50 arising from the followingestimated direct material purchases for November and December of 2024 SAA purchases in November 2024 $223,875.00 SAA purchases in December 2024 $162,563.50 Unit sales amounted to: 70,000 units for November and 150,000 units for December. 6. PetWorks' manufacturing process is highly automated, so their direct labor cost islow. Employees are paid on a per unit basis. Their total pay each month is,therefore, dependent on production volumes and averages $9.00 per hour. This ratealready includes the employer's portion of employee benefits. All payroll costs arepaid in the period in which they are incurred. Each unit spends a total of 18 minutesin production. 7. Due to the similarity of the equipment in each of the production stages and thecompany's concentration on a single product, manufacturing overhead is allocatedbased on volume (i.e., the units produced). The unit variable overheadmanufacturing rate is $1.30, consisting of: Utilities--$0 60; Indirect Materials--$0 20;Plant maintenance--$0.30; environmental fee—-$0.14; and Other--$0.06. 8. The fixed manufacturing overhead costs for the entire year are as follows:Training and development $ 43, 200 Property and business taxes 39,000 Supervisor's salary 149,400 Depreciation on equipment 178,800 Insurance 96,000 QOther 117 800Total $ 624,000 = The property and business taxes are paid on June 30 of each year. The expectedpayment for next year is $39,600. « The annual insurance premium is paid at the beginning of September each year.There should be no change in the premium from last year. « All other "cash-related" fixed manufacturing overhead costs are incurred evenlyover the year and paid as incurred. = PetWorks uses the straight-line method of depreciation. 9. Selling and administrative expenses are known to be a mixed cost; however, thereis a lot of uncertainty about the portion that is fixed. Previous year's experience hasprovided the following information: Lowest level of sales: 375,000 units Total Operating Expenses: $778,710Highest level of sales: 750,000 units Total Operating Expenses: $1,022 460 These costs are paid in the month in which they occur. Not included in the aboveexpenses is bad debt expense. Hint: Use the high-low method to determine thevariable and fixed portion of selling and administrative expenses. 10. Sales are on a cash and credit basis, with 55% collected during the month of thesale, 35% the following month, and 9.5% the month thereafter. ¥z of 1% of sales areconsidered uncollectible (bad debt expense) 11. Sales in November and December 2024 are expected to be $700,000 and$1,500,000, respectively. Based on the above collection pattern this will result inAccounts Receivable of $734,000 at December 31, 2024, which will be collected inJanuary and February 2025 12. During the fiscal year ended December 31, 2025, PetWorks will be required tomake monthly income tax installment payments of $5,000. Outstanding income taxesfrom the year ended December 31, 2024, must be paid in April 2025. Income taxexpense is estimated to be 25% of net income. Income taxes for the year endedDecember 31, 2025, in excess of installment payments, will be paid in April 2026. 13. PetWorks is planning to acquire additional manufacturing equipment for$204,300 cash. 40% of this amount is to be paid in November 2025, the rest inDecember 2025. The manufacturing overhead costs shown above already includethe depreciation on this equipment. 14. An arrangement has been made with the local bank that if PetWorks maintains aminimum balance of $20,000 in their bank account, they will be given a line of creditat a preferred rate of 8% per annum. All borrowing is considered to happen on thefirst day of the month, repayments are on the last day of the month. All borrowingsand repayments from the bank should be in multiples of $1,000 and interest must bepaid at the end of each month. Interest is calculated on the balance at the beginningof the month, which includes any amounts borrowed that month. 15. PetWorks Ltd. has a policy of paying dividends at the end of each quarter. Thepresident tells you that the board of directors is planning on continuing their policy ofdeclaring dividends of $50,000 per guarter. 16. A listing of the estimated balances in the company's ledger accounts as ofDecember 31, 2024, is given below: Assets Cash § 83,385 Accounts receivable 734,000 Inventory-raw materials 9,000Inventory-finished goods 9,125 Prepaid Insurance 64,000 Prepaid property and business taxes 19,200Capital assets (net) 724 000 Total assets $1,642,690 Liabilities and Shareholders® EquityAccounts payable $ 208,407 Income taxes payable 21,500 Capital stock 1,000,000 Retained Earnings 412,783 Total liabilities and shareholders' equity $1,642,690 Required. 1. Frepare a monthly master budget for PetWorks for the year ended December 31,2025, including the following schedules (Use the Excel template providedl): Sales Budget & Schedule of Expected Cash Collections Production Budget & Manufacturing Overhead Budget Direct Materials Budget & Schedule of Expected Cash Disbursements for MaterialsDirect Labor Budget Selling and Administrative Expense Budget Ending Finished Goods Inventory Budget (Absorption and Variable Costing) Cash Budget Prepare budgeted financial statements at December 31, 2025, using absorptioncosting and a budgeted income statement using variable costing. Assume that the actual results for 2025 ended up being the following: The marketing department was only able to achieve an actual sales volume of450,000 units, although the amount produced was based on the 2025 budget. The human resources department concluded that the direct labor cost ended upbeing $12 per hour. A) Briefly but concisely comment on the impact these changes had on net income forthe year. B) Briefly but concisely explain what you as the accounting manager could do, totake advantage of the interdependence of the functional areas within the business, todevelop strategies which will positively impact financial performance Ending Finished Goods Inventory Budget (Absorption Costing)For the year ended December 31, 2025 ltem Quantity Cost/unit TotalProduction cost per unit:Direct materials: kg.Direct LaborManufacturing overhead ] Unit product cost Budgeted finished goods inventory:Ending finished goods inventory in unitsUnit product costs (see above) Ending finished goods inventory in dollars Budgeted cost of goods sold:Beginning finished goods inventoryPlus cost of goods manufactured Less: ending inventory Budgeted cost of goods sold in dollars: PetWorks LtdEnding Finished Goods Inventory Budget (Variable Costing)For the year ended December 31, 2025 Item Quantity Cost/unit TotalProduction cost per unit:Direct materials:Direct LaborManufacturing overheadUnit product cost Budgeted finished goods inventory:Ending finished goods inventory in unitsUnit product costs (see above) Ending finished goods inventory in dollars PetWorks LtdEnding Finished Goods Inventory Budget (Variable Costing)For the year ended December 31, 2025 Item Quantity Cost/unit TotalProduction cost per unit:Direct materials: kg.Direct Labor hr Manufacturing overhead Jumitl 130 -] Unit product cost Budgeted finished goods inventory:Ending finished goods inventory in unitsUnit product costs (see above) Ending finished goods inventory in dollars Budgeted cost of goods sold:Beqginning finished goods inventoryPlus cost of goods manufactured Less: ending inventory Budgeted cost of goods sold in dollars: PetWorks LtdCash BudgetFor the year ended December 31, 2025JanFebMarAprMayJunJulAugSepOctNovDecYearCash balance, beginning83,365Add receipts:Collections from customers619,000297,500119,750316,250207,25092,50077,25094,75099,500457,000822,0001,521,2504,724,000Total cash available before financingLess disbursements:Direct materialsDirect LaborManufacturing overheadSelling and administrative expensesTax remittanceTax payablePrepaid insurancePrepaid property and business taxCapital asset purchasesDividend paymentTotal disbursementsExcess (deficiency) of cash available overdisbursementsFinancing:Borrowing (at the beginning of the month)Repayment (at the end of the month)Interest expense (paid monthly)Total financingCash balance, endingRunning total