L. C. Body Boards Inc. Budgeting Project As the head accountant for L. C. Body Boards Inc., you are responsible for preparing the company's master budget for the first quarter of 20XX. The administrative and divisional managers have prepared the appropriate information (found below) for you to prepare the budget. In addition to the compiled information, you will also find the budgets, reports, questions, and statements required by the CFO. Step 1 L. C. Body Boards Inc. produces Body Boards for sale at local surf shops. The company is in the process of creating a master budget for the first quarter of 20XX. Sales results from the prior year are: Last Year Units Sold January 190,000 February 210,000 March 215,000 April 199,000 May 194,000 Unit Sales are to expected increase 14% above last year's sales and each unit sells for $53.00. All sales are on credit. The company expects to collect 70% of sales in the month of sale, 28% of sales in the month following the sale, 2% percent will be uncollectable (Bad Debt Debts Expense is recognized in the month of sale). The company gives credit terms of 2/EOM, n/EOM second month. Accounts receivable at the end of last year totaled $ 485,000. This represents the collectable amount of December sales that will be collected in January. Management prefers to maintain ending finished goods inventory equal to 12% of next month's sales. The Finished Goods Inventory on December 31 of the prior year was 32,500 units. REQUIRED: a) Prepare a sales and cash collections budget for L. C. Body Boards Inc. (For all budgets show amounts for January, February, March, and the total for quarter, also all budgets need to be to two decimal places) b) Prepare a production budget for L. C. Body Boards Inc. L.C Body Boards Inc. Sales and Collections Budget First Quarter of year 2024 Quarter 1 4Q previous year January February March April May Total Budgeted Sales (Units) Selling Price per Unit Total Sales Sales on Account Collections in quarter of sale Less Discounts (January) Collections in qtr after sale Total Collections Bad Debt Expense 23-Dec January Budgeted sales (unit) Add desired ending inventory Total needs Less beginning inventory Required production L.C Body Boards Inc. Production Budget First Quarter of year 2024 February Quarter March April Total