Problem 13-66 (Algo) Comprehensive Budget Plan (LO 13-3, 4, 5) Lane Products manufactures a popular kitchen utensil. The company recently expanded, and the controller belleves that it will need to borrow cash to continue operations. It opened negotlatlons wlth the local bank for a one-month loan of $80,000 starting March 1. The bank would charge Interest at the rate of 0.5 percent per month and require the company to repay Interest and princlpal on March 31 . In considering the loan, the bank requested a projected Income statement and cash budget for March. The following information is avallable: - The company budgeted sales at 32,000 units per month In February, Aprll, and May and at 29,000 units in March. The selling price is $80 per unit. - The company offers a 2 percent discount for cash sales. The company's experlence is that bad debts average 1 percent of credit sales. - The Inventory of finlshed goods on February 1 was 4,400 unlts. The desired finished goods Inventory at the end of each month equals 25 percent of sales anticipated for the following month. There is no work in process. - The Inventory of raw materlals on February 1 was 3,280 pounds. At the end of each month, the raw materlals Inventory equals no less than 20 percent of production requirements for the following month. The company purchases materlals in quantitles of 350 pounds per shipment. - Selling expenses are 6 percent of gross sales. Administratlve expenses, which Include depreclation of $1,750 per month on office furnlture and fixtures, total $80,400 per month. - The manufacturing budget for the utensil, based on normal production of 31,000 unlts per month, follows. Required: a-1. Prepare schedules computing Inventory budgets by months for production In units for February, March, and April. a-2. Prepare schedules computing Inventory budgets by months for raw materlals purchases in pounds for February and March. b. Prepare a projected Income statement for March. Cost of goods sold should equal the varlable manufacturing cost per unlt times the number of units sold plus the total fixed manufacturing cost budgeted for the perlod. Assume that 40 percent of sales are cash sales. Answer is not complete. Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Prepare schedules computing inventory budgets by months for production in units for February, March, and April. Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Prepare a projected income statement for March. Cost of goods sold should equal the variable manufacturing cost per unit times the number of units sold plus the total fixed manufacturing cost budgeted for the period. Assume that 40 percent of sales are cash sales. Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar