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Question #1 (100 Marks) Tiny Toons was established on January 1, 2022 - capitalized though the issuance of common shares for $85,000. Tiny Toons produces

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Question #1 (100 Marks) Tiny Toons was established on January 1, 2022 - capitalized though the issuance of common shares for $85,000. Tiny Toons produces miniature, plastic cartoon characters Their 2022 estimated sales are 50,000 units at $120 per unit. Tiny Toons desires an ending inventory of 5,000 units and there is no beginning inventory. 30% of sales are cash and 70% are credit card. The credit card charges a 3% service charge, with 80% of the credit card sales are collected in the current period and 20% in the following period. 90% of the raw material purchases are paid for during the period of purchase, 10% paid in the following period. Materials cost $100 per unit and Tiny Toons desires an ending inventory for raw materials of 25 units. Direct Labour Costs are paid in the period incurred and are $20 per hour and it takes 1 and 2 hours to produce one unit. Manufacturing overhead is allocated based on direct labour hours at $30 per hour. Manufacturing equipment cost $35,000, salvage value $5,000, 5 year useful life All overhead costs (excluding depreciation) are paid in the period incurred as follows: Salary expense $150,000, Sales Commissions $175,000, Sales Supplies $25,000, Rent $75,000 and miscellaneous expenses of $5,000. They require a cash balance of $601,100 and to maintain this cash balance, a line of credit is available for 3% per annum. Note: All borrowings and repayments occur on the first day of the period. REQUIRED: 1. Prepare a Sales Budget (3 marks) 2. Prepare a Production Budget (5 marks) 3. Prepare a Raw Materials Budget (10 marks) 4. Prepare a Direct Manufacturing Labour Budget (5 marks) 5. Prepare a Manufacturing Overhead Budget (3 marks) 6. Prepare a Cost of Goods Manufactured Budget and a unit cost (7 marks) 7. Prepared a Selling, General and Administrative Expenses Budget (6 marks) 8. Prepare a Proforma Income Statement (7 marks) 9. Prepare a Cash Receipts Schedule (4 marks) 10. Prepare a Credit Cards Proforma Data Schedule (3 marks) 11. Prepare a Cash Payments Budget (4 marks) 12. Prepare proforma data for accounts payable, raw material inventory and accumulated deprecation, Finished Goods Inventory December 31, 2022 and Cost of Goods Sold (5 marks) 13. Prepare a Cash Budget (21 marks) 14. Prepare a Proforma Balance Sheet (17 marks)

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