Spot Ltd Spot Ltd manufactures and sells a pocket torch Quarterly information for the last three quarters of 2019 and the first two quarters of 2020 are as follows: 1) Budgeted sales in units are: Quarter No. of units 2, 2019 60,000 3, 2019 100,000 4, 2019 50,000 1, 2020 70,000 2, 2020 80,000 Selling price is 4 per torch. 2) 75% of sales are paid for in cash when the sale is made, and the remaining 25% of customers pay in the following quarter. Bad debts are negligible and should be ignored. Receivables at the beginning of the 2nd quarter in 2019 are estimated at 40,000 3) Closing Inventory of finished torches at the end of each quarter should be 30% of budgeted sales for the next quarter. This is expected to be the case at the end of the first quarter of 2019 when the closing Inventory was 18,000 units. 4) Each torch used 0.5 kgs of materials. Company policy dictates that the closing inventory of raw materials at the end of each quarter should be 10% of the production needs of the next quarter. This requirement is expected to be met at the end of the first quarter 2019, when the closing Inventory is expected to be 3600 kgs. 5) The cost per kg of raw materials is 4. Purchases of raw materials are paid for in the following pattern: 60% paid in the quarter the purchases are made and the remaining 40% paid in the following quarter. The figure for payables for raw materials at 1st April 2019 is expected to be 38,880 All of this amount will be paid in the second quarter of 2019 5) Costs associated with labour and overheads are treated as fixed. Payments are made in each quarter. The payments per quarter in 2019 and 2020 are 90,000 for labour and 20,000 for overheads. 7| The opening cash balance on 1st April 2019 is expected to be 26,570 overdrawn 3) The likely budgated sales in units, forecast for the third quarter of 2020 is 120,000 PREPARE 1) Sales budget, production budget purchases budget and cash budget for the 2nd, 3rd and 4th quarters of 2019 and the first quarter of 2020