Okay Company is preparing to build its master budget. The budget will detail each quarters activity and the activity for the year in total. The master budget will be based on the following information:

a. This will be the first year of operation for Okay Company.

b. Budgeted unit sales by quarter for 2017 are projected as follows: First quarter 6,500, Second quarter 6,000, Third quarter 6,100 & Fourth quarter 6,250.

c. The selling price is $50 per unit. Sales are estimated to be collected 70% in cash and 30% credit.

d. Of the credit sales, 80% are estimated to be collected in the quarter of the sale and the remaining 20% is collected in the quarter following the sale.

e. Okays past experience indicates that cost of goods sold is about 60 percent of sales.

f. Since this is the first year of operations there is no beginning inventory at the beginning of the year. Okays ending inventory policy is 40% of the following quarters inventory needs.

g. Okay buys inventory on account. The purchases are paid for in full the quarter following the purchase.

h. Selling and administrative expenses total $15,000 per quarter, which includes $2,500 depreciation. All selling and administrative expenses requiring cash payments are paid for in the month incurred.

Required: Prepare the following budgets for Okay Company:

1. Sales budget for all 4 quarters and yearly total.

2. Sales Type for 1st and 2nd quarters.

3. Cash Collections of Sales for 1st and 2nd quarters.

4. Inventory purchases budget for 1st and 2nd quarters.

5. Cash Payments of Inventory for 1st and 2nd quarters.

6. Selling and Administrative expenses budget for 1st and 2nd quarters.

7. Cash Payments of Selling and Administrative expenses for 1st and 2nd quarters.

8. Cash budget for 1st and 2nd quarters.

9. Calculate 2nd quarter ending Cash Balance if 1st quarters Sales Units is changed to 6,000