SunBrella Corp is a manufacturing company that produces and sells beach tents. The company is in the process of preparing a budget for Quarter 2 (April-June) and has assembled the following data: Expected unit sales for the upcoming months are: March 500 April 620 May 950 June 1,100 July 920 August 850 Selling price is $45 per tent. Of its sales 60% is for cash and the remainder will be credit sales. 50% of the credit sales are collected in the month the sales are made and the remainder is collected in the following month. Each tent requires 4 yards of cotton canvas, which cost $8 per yard. Each tent takes 30 minutes to build, and the labor rate is $8 per hour. Each months finished goods ending inventory should be 30% of next month sales and ending direct material should be 20% of next month production needs. The company pays for 60% of the materials purchased in the month of the purchase and 40% in the following month. Direct material purchases for March totaled $800. Selling general and administrative costs are $820 per month plus $0.75 per unit sold Variable manufacturing overhead is incurred at a rate of $0.4 per unit produced. Annual fixed overhead is $9,000 ($750 per month) for an expected production of 9,000 units for the year. Fixed overhead includes $280 depreciation expense per month. All operating costs (except for direct materials) are paid for during the month incurred. New equipment costing $15,000 will be purchased in April SunBrella had $12,200 cash on hand on March 31. The Company can borrow in increments of $1,000 to maintain a minimum monthly balance of $10,000. The company borrows at the beginning of the month. Loans are repaid at the end of the earliest month in which there is sufficient cash. Interest is 1% per month. Required: [Show all your calculations to receive full points] Prepare the following budgets for the month of April.

1) Sales budget 2) Production budgets 3) Direct material purchase budget 4) Cash collection budget 5) Cash payment budget 6) Cash budget 7) Prepare an income statement (GAAP)