Sales are ool leciedas follows tall utes on seconis 45% m the minn ef sele, 55% nemnth iner ule. 1here was to oustanding Rccaris receivable at the sart of January Management requires that ending inverrory he 20% ofthe Sollowing met's budgeted ulee imetiry on terdie inury i was 1,000 nits Ending ievestory for Agoil is 800 ueits Each unt requires a menors of fahne. Management would ble ta have endizg imetory bhric oqtad in 19%of the follarwni month's production needs; there were 13,000 meters of Sric on hand on Jasury 1 Management pays for falnic purdais as Sollows: 60% in the moth or ponese and um the meth ate purchase Each meter of fahric costs $2.00 Accoents payable o onuary I was $40,000 all of which will be paid during Janary Cash on hand at January I is $40,000 Management requires a mininum cash balasce at the end of each month of s10,000 IE nocesary, masagement cin bomow Beerowing ooers at he aarl of the tasthnd repay tetis occur ar&eerd of the month For simplicity, igrore timpued inerest Interest is only paid when the ken is repaid Managemens has budgeted the following for expenses (paid in cash in the month incurred) "REMEMBER THAT DEPRECIATION IS A NON-CASH ITEM January February Mch April 34,000 1.500 $2.000 4,000 $1,500 5,000 3,000 Depreciation $1,300 54,000 $3,000 Salaries $3,000 Required: 1. a. Create a cash receipts budget for the first quarter of the year b. What is the accounts receivable balance as at March 31? 2. Create a production budget for the first four months of the year. 3. a. Create a direct materials budget for the first quarter of the year b. Create a cash disbursements budget for direct materials for the first quarter of the year c. What is the accounts payable balance as at March 31 4. Create a cash budget for the first quarter of the year Part 2 -Short Answer Questions Note: Show all supporting calculations, presented neatly, or full marks may not be granted Question 1 (2 marks) Marple Company's budgeted production in units and budgeted raw materials purchases over the next three months are given below: Budgeted production (in units) Budgeted raw materials purchases (in kilograms) January February March 100,00o 129,000 165,000 188,000 60,000 Two kilograms of raw materials are required to produce one unit of product. The company wants raw materials on hand at the end of each month equal to 30% of the following month's production needs. The company is expected to have 36,000 kilograms of raw materials on hand on January 1. Required: Calculate the budgeted production in units for February, showing all required calculations, neatly presented