Portraits Unlimited Company Budzeting Project Ian Jennings, president of Portraits Unlimited Company, was just conclading a budget meeting with his senior staff. It was November of 2022, and the group was discussing. preparation of the firm's master budget for 2023 . "Fve decided to go ahead and purchase the industrial robot we've been talking about. We'tl make the acquisition on January 3 of next year, and I expect it will take most of the year to train the personnel and reorganize the production process to take full advantage of the new equipment." In response to a question about financing the acquisition, Jenaings replied as follows: "The robot will cost $250,000. There will also be an additional $50,000 in ancillary equipment to be purchased. We'll finance these purchases with a one-yeat 5300,000 loan from Shark Bank and Trust Company on January 2. T've negotiated a repayment sclodule of four equal installments on the last day of each quarter. The interest nate will is 10 percent per annum on the reducing balance basis, and interest payments will be quarterly as well." With that the meeting broke up, and the brdget process was on. Portraits Unlimited Company is a manufacturer of metal picture Portraits. The fimn's two product lines are designated as S (small Portraits, 57 inches) and L. (large Partraits; 810 inches). The primary raw materials are flexible metal strips and 9-inch by 24-inch glass sheets. Each S Portrait requires a 2-foot metal strip; and an L Portrait requires a 3-foot strip. Allowing for nocmal breakage and scrap glass, the company can get either four S Portraits or two L Pottraits out of a glass sheet. Other raw materials, such as cardboard backing, are insignificant in cost and are treated as indirect materiaks. Jane Williams, Portraits Unlimited's controller is in charge of preparing the master budget for 2023 . Sbe has gathered the following information: 1. Sales in the fourth quarter of 2022 are expected to be 50,0005 Portraits and 40,000L Portraits. The sales manager peedicts that over the next two years, sales in each product line will grow by 5,000 units each quarter over the previous quarter. For example, $ Portnaits: sales in first quarter of 2023 are expecied to be 55,000 anits. 2. Portraits Unlimited Company sales history indicates that 60 perecent of all sales are an crechit, with the remainder of the sales in cash. The conpany's collecticn expericnce shows that 80 percent of the credit sales are collected during the quarter in which the sale is made, while the remaining 20 percent is collected in the following quarter. 3. The S Portrait sells for $10, and the L Portrait sells for $15. These prices are expected to hold constant throughout 2023 . 4. The production manager attempts to end each quarter with onvagh finivhed goeds inventory in each product line to cover 20 percent of the following quartar's sales. Moreover, an attenipt is made to end each quater with 20 percent of the glass sheets needed for the following quarter's production. Assuene an ending in entary of glaes aheets of 10,400 for the fourth quarter of 2023 Metal strips are purchased locally, the compamy buys them ce a just-in-time baris inventory is negligible. The ogening inventury for quarter 4,2022 for both finidhed goods and ruw materials can be found by determiniog the desired ending ievertory for quarter 3,2022 bused on the inventory: principle provided. 5. All direci-material purchases ase made on acosex, and 20 percent of each quarter's parchases are paid in cash duriag the same quarter an the purchaie. The other 20 percent is peid in the nect quarter, 6. Indireet materials are purchased with eash as needod. Woek to process is negligible. 7. The following manufacturing overhead costs are budgeted for 2023: 8. Projected manufacturing costs in 2023 are as follow: 9. The following relates to past selling and administrative expenses. (Use regression analysis to derive a cost function and use this cost function to estimate the selling and administrative cost). 10. Jackson anticipates that dividend of $50,000 will be declared and paid in cauh each quarter. 11. Portraits Unlimited Company projected balance sheet as of December 31, 2022, follows Prepare Portraits Unlimited Company master budget for each quarter of 2023 and in total for the year by completing the following budgets and schedules: (a) Sales budget (prepare 4th quarter of 2022 as well). (8 marks) (b) Schedule of cash collected from customers. (101/2 marks) (c) Production budget (prepare 4th quarter of 2022 as well). (19 marks) (d) Direct-material budget (prepare 4th quarter of 2022 as well). (191/2 marks) (e) Schedule of cash disbursement to suppliers for direct material. (8 marks) (f) Direct labour budget