Part 1 (10 Marks) Ferry Company has gathered the following information: April 30, cash balance $25,000 Dividends paid in May $9,000 Cash expenditures in May for operating expenses$49,000 Amortization expense in May $20,000 Cash collections in May $132,000 Merchandise purchases paid in cash in May $121,000 Purchased equipment for cash in May $55,000 Ferry desires to keep a minimum cash balance of $15,000. Required: Prepare a cash budget for May, and indicate whether or not Ferry meets minimum cash requirements. Part 2 (20 Marks) Budget Corporation has the following budgeted sales for the next six-month period: Month September October November December Unit Sales 60,000 80,000 140,000 100,000 January February 120,000 80,000 There were 30,000 units of finished goods in inventory at the beginning of September. Plans are to have an inventory of finished products that equal 20 percent of the unit sales for the next month. Five kilograms of materials are required for each unit produced. Each kilogram of material costs $10. Inventory levels for materials are equal to 30 percent of the needs for the next month. Materials inventory on September 1 was 10,000 kilograms. Required: a. Prepare production budgets in units for October, November, and December. b. Prepare a purchases budget in kilograms for October, November, and December, and give total purchases in both kilograms and dollars for each month