Master Budget Based on the following information, prepare the Master Budget for Brindle Arts, Inc. for Quarter 1, 2022. Beginning of quarter balances: Cash Accounts Receivable Raw Materials inventory (kits) $ 70,502 $ 360,013 Finished Goods Inventory (pieces of art) $ 1,225 $ 3,453 Buildings and equipment $ 400,000 Accounts Payable Common Stock Retained Eamings $ 95,788 $ 550,000 $ 522,669 Master Budget out of 25 point Actual and budgeted sales data (pieces of artwork): December 5,040 January February March April May 4,536 4,788 4,627 4,453 4,673 Artwork is sold for $205 per piece. Selling price per piece of $ 205 Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following sale. The accounts receivable at the beginning of the quarter are a result of December's credit sales. Sales: Cash 60% Credit 40% The finished goods inventory on hand at the end of each month must equal 27% of the next month's sales. Finished Goods inventory 27% of next month's sales The raw materials inventory on hand at the end of each month must equal 15% of the following month's production needs for raw materials. 5 finishing kits are needed per piece of artwork. f next month's production need Raw materials needed per piece of artwork Raw materials inventory: Raw materials cost: $ 15% 15.00 5 finishing kits per finishing kit 70% of each raw materials purchases is paid for in the month of purchase; the other 30% is paid in the following month. The accounts payable at the beginning of the quarter are the result of December raw materials purchases. Purchases: Month of 70% Manufacturing and Selling and Administrative costs: ariable cost per piece of artwor Direct $ 75.00 Direct labor $ 25.00 Var. MOH $ 20.00 Var. S&A $ 15.00 Month after 30% Fixed costs per quarter: Manufacturing OH Depreciation - Manuf. $ 375,000 $ 75,000 Selling and Admin. $ 300,000 Depreciation - S&A $ 150,000 Office equipment costing $150,000 will be purchased for cash in January and new equipment will be purchased in February for $120,000. Office equipment $ 150,000 in January Equipment purchase $ 120,000 in February Management would like to maintain a minimum cash balance of at least $50,000 at the end of each month. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month. The interest rate on these loans is 2% per month and for simplicity we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter. Minimum cash on hand $ Borrow in $ 50,000 1,000 increments Interest (no compounding) 2.0% Use the data above, complete the following statements and schedules for Quarter 1, 2022. Schedule of expected cash collections: Cash Sales Credit sales Total cash collected Accounts Receivable at the end of the quarter January February March Bonus (up to 2pts) Quarter 1