Problem: GIVEN: The Beautiful Lamp Company makes and sells well designed end table lamps. Management is confident about its forecasted sales growth in light of the price and high quality craftsmanship. Below is the information that management is using in preparing the upcoming budget. Sales: Sales in the fourth quarter preceding the budget year were 12,000 units, and sales are expected to increase by 500 units per quarter for the budget year. The sales price per lamp is $56.00 in the fourth quarter of the year preceding the budget year and is expected to increase by $1.00 per lamp per quarter for the next several quarters. History indicates that 55% of sales are cash sales and the balances are sales on account which are fully collected the following quarter. The Accounts Receivable balance at the end of the fourth quarter of the year preceding the budget year is budgeted to be $302,400. Inventory: The company maintains a finished goods inventory equal to 25% of the following quarter sales. The lamps cost $25.00 each in the 4th quarter preceding the budget year, and costs are expected to rise by $0.50 per lamp per quarter beginning in the first quarter of the budget year. Sixty percent (60%) of the inventory purchases are paid in the month purchased and the balance is paid in the following quarter. The Accounts Payable balance at the end of the 4th quarter preceding the budget year is expected to be $121,250. Operating Expenses: The company's operating expenses include the following. Rent for the plant is $150,000 per quarter. Depreciation expense is $4,000 per quarter. Salaries and wages are $120,000 in the 4th quarter preceding the budget year and are expected to increase by 1% per quarter for the budget year. Miscellaneous expenses in the fourth quarter of the year preceding the budget year are $35,000 and are expected to increase by 2% per quarter for the next several quarters. All Operating expenses are paid in the quarter in which they are incurred. Accounting information: Cost of Goods Sold (for each quarter) is determined by the estimated average cost per unit purchased during the year times the number of units sold during each quarter. The beginning Cash balance for the budget year is expected to be $85,000. REQUIRED: Prepare the five budgets: Sales, Purchases, Operating Expenses, Income Statement, and Cash.