Kindly provide an analysis or report of this budget. Thank you!

Ihe Best I:ver Company Is now In the process of preparing Its master budget for the rst quarter. The business always maintains a minimum ending inventory stock each month which must equal 20% of the following month's sales. The inventory at the end o December was 5,000 units. The cost of producing each unit = $5.00. Production costs are paid 100% in the month following. December's accounts payable for production is $140,000 and will be paid in full in January. The Best Ever Company is forecasting that monthly other expenses (excluding depreciation) are xed at $75,000 per month, and that they will purchase some equipment in March for $50,000. The company will borrow $200,000 in January and wil repay this amount plus interest of $6,000 on March 31. Depreciation expense is $20,000/month. Opening Cash on January 1st is $30,000. Cash Collections and Unit Sales are expected as follows: m Apr" Bud t eted Sales in Units 15,000 20,000 30.000 40,000 Budeted Cash Collections $100 000 $160 000 $355 000 Required: at) Create a Production budget by month for the 1st quarter & calculate production costs b) Prepare a cash budget by quarter and by month, for the 3 month period. Jan Feb Mar Quarter Budgeted Sales in Units 15,000 20,000 30,000 5,000 Add: Ending Inventory 4,000 6,000 8,000 8,000 Total Units Required 19,000 26,000 38,000 73,000 Less: Beginning Inventory (5,000) 4,000 6,000) (5,000 Total Units Produced 14,000 22,000 32,000 68,000 Unit Cost 5.00 5.00 5.0 5.0 Total Production Cost 70,000 110,000 160,000 340,000 Cash Disbursement for production Jan Feb Mar Quarter Jan Disbursement 140,000 140,000 Feb Disbursement 70,000 70,000 Mar Disbursement 110,000 110,000 Total 140,000 70,000 110,000 320,000 Cash Budget Jan Feb Mar Quarter Cash Balance, beginning 30,000.00 115,000.00 130,000.00 30,000.00 Equipment sales proceeds Add: Collection from sales 100,000.00 160,000.00 355,000.00 615,000.00 Total Cash Available 130,000.00 275,000.00 485,000.00 645,000.00 Deduct Disbursements: Purchases for production (140,000.00) (70,000.00) (110,000.00) (320,000.00) Other expenses (75,000.00) (75,000.00 (75,000.00) (225,000.00) Equipment purchase (50,000.00 (50,000.00) Total disbursements (215,000.00) (145,000.00) (235,000.00) 595,000.00) Excess (deficiency) of cash Financing: Borrowings 200,000.00 200,000.00 Repayments 200,000.00 (200,000.00) Interest (6,000.00) (6,000.00) Total financing 200,000.00 (206,000.00) (6,000.00) Cash balance, ending 115,000.00 130,000.00 44,000.00 44,000.00