Mylar Company manufactures and sells a product that has seasonal variations in demand, with peak sales coming in the third quarter. The following information concerns operations for year 2-the coming year-and for the first two quarters of year 3: a. The company's single product sells for $8 per unit. Budgeted sales in units for the next six quarters are as follows: Year 2 Quarter Year 3 Quarter 1 2 3 4 2 Budgeted sales in units 40,000 60,000 100,000 50,000 70,000 80,000 b. Sales are collected in the following pattern: 75% in the quarter the sales are made and the remaining 25% in the following quarter. On January 1, year 2, the company's balance sheet showed $65,000 in accounts receivable, all of which will be collected in the first quarter of the year. Bad debts are negligible and can be ignored. c. The company desires an ending inventory of finished units on hand at the end of each quarter equal to 30% of the budgeted sales for the next quarter. This requirement was met on December 31, year 1, in that the company had 12,000 units on hand to start the new year. d. Five kilograms of raw materials are required to complete one unit of product. The company requires an ending inventory of raw materials on hand at the end of each quarter equal to 10% of the production needs of the following quarter. This requirement was met on December 31, year 1, in that the company had 23,000 kilograms of raw materials on hand to start the new year. e. The raw material costs $0.80 per kilogram. Purchases of raw material are paid for in the following pattern: 60% paid in the quarter the purchases are made, and the remaining 40% paid in the following quarter. On January 1, year 2, the company's balance sheet showed $81,500 in accounts payable for raw material purchases, all of which will be paid for in the first quarter of the year. Required: Prepare the following budgets and schedules for the year, showing both quarterly and total figures: 1. A sales budget and a schedule of expected cash collections 2. A production budget 3. A direct materials purchases budget and a schedule of expected cash payments for material purchases Provide step by step solution