Learning Objectives $3,4$ P$-$M:$7-50$B Completing a comprehensive budgeting problem$$manufacturing company

$3$rd Qtr$.$ DM purchases $$15,6004$th Qtr$.$ total cash pmts$.($before interest$)$ $$60,810$

The Gavin Tire Company manufactures racing tires for bicycles. Gavin sells tires for $$70$ each. Gavin is planning for the next year by developing a master budget by quarters. Gavin's balance sheet for December $31,2024,$ follows:

Other data for Gavin Tire Company:

a$.$ Budgeted sales are $1,000$ tires for the first quarter and expected to increase by $200$ tires per quarter. Cash sales are expected to be $10\%$ of total sales, with the remaining $90\%$ of sales on account.

b$.$ Finished Goods Inventory on December $31,2024,$ consists of $300$ tires at $$36$ each.