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Lane Products manufactures a popular kitchen utensil. The company recently expanded, and the controller believes that it will need to borrow cash to continue operations,

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Lane Products manufactures a popular kitchen utensil. The company recently expanded, and the controller believes that it will need to borrow cash to continue operations, It opened negotiations with the local bank for a one-month foan of $56,000 starting March 1 . The bank would charge interest at the rate of 0.5 percent per month and require the company to repay interest and principal on March 31 . In considering the loan, the bank requested a projected income statement and cash budget for March. The following information is available: - The company budgeted sales at 20,000 units per month in February, April, and May and at 17,000 units in March. The selling price is $68 per unit. - The company offers a 2 percent discount for cash sales. The company's experience is that bad debts average 1 percent of credit sales. - The inventory of finished goods on February 1 was 3.200 units. The desired finished goods inventory at the end of each month equals 25 percent of soles anticipated for the following month. There is no work in process. - The inventory of raw materials on February 1 was 2,680 pounds. At the end of each month, the raw materials inventory equais no less than 20 percent of production requirements for the following month. The company purchases materials in quantities of 290 pounds per shipment. - Seiling expenses are 6 percent of gross sales, Administrative expenses, which include depreciation of $1,150 per month on office furniture and fixtures, total $73,200 per month. - The manufacturing budget for the utensil, based on normal production of 19,000 units per month, follows. Required: a-1. Prepare schedules computing inventory budgets by months for production in units for February, March, and Aprili, a-2. Prepare schedules computing inventory budgets by months for raw materials purchases in pounds for February and March. b. Prepare a projected income statement for March. Cost of goods sold should equal the variable manufacturing cost per unit times the number of units sold plus the total fixed manufacturing cost budgeted for the period. Assume that 40 percent of sales are cash sales. Required: a-1. Prepare schedules computing inventory budgets by months for production in units for February, March, and April. a-2. Prepare schedules computing inventory budgets by months for raw materials purchases in pounds for February and March. b. Prepare a projected income statement for March. Cost of goods sold should equal the variable manufacturing cost per unit times the number of units sold plus the total fixed manufacturing cost budgeted for the period. Assume that 40 percent of sales are cash sales. Complete this question by entering your answers in the tabs below. Prepare schedules computing inventory budgets by months for production in units for February, March, and April. a-1. Prepare schedules computing inventory budgets by months for production in units for February, March, and April. a-2. Prepare schedules computing inventory budgets by months for raw materials purchases in pounds for February and March. b. Prepare a projected income statement for March. Cost of goods sold should equal the variable manufacturing cost per unit times the number of units sold plus the total fixed manufacturing cost budgeted for the period. Assume that 40 percent of saies are cash sales. Complete this question by entering your answers in the tabs below. Prepare schedules computing inventory budgets by months for raw materials purchases in pounds for February and March. Prepare a projected income statement for March. Cost of goods sold should equal the variable manufacturing cost per unit times the number of units sold plus the total fixed manufacturing cost budgeted for the period. Assume that 40 percent of sales are cash sales. Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar

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