The companys CFO has asked you to prepare the 2022 master budget. To fulfill this request, prepare the following budget schedules and financial statements.

1. Quarterly sales budget including a schedule of expected cash collections.

2. Quarterly production budget.

3. Quarterly direct materials budget including a schedule of expected cash disbursements for purchases of materials.

4. Quarterly direct labor budget.

5. Quarterly manufacturing overhead budget.

6. Ending finished goods inventory budget at December 31, 2022.

7. Quarterly selling and administrative expense budget.

8. Quarterly cash budget.

9. Income statement for the year ended December 31, 2022.

10. Balance sheet at December 31, 2022.

Balance Sheet

December 31, 2021

AssetsCurrent Assets:Cash $46,200

Accounts Receivable $260,000

Raw Marerials Inventory (4500 yards) $11,250

Finished Goods Inventory (1500 units) $32,250

Total Current Assets $349,700

Plant and EquipmentBuildings and equipment $900,000

Accumulated Depreciation $(292,000)

Net Plant and Equipment $608,000

Total Assets $957,700

Liabilities and Stockholder's EquityCurrent Liabilities:

Accounts Payable $158,000

Stockholder's EquityCommon Stock $419,800

Retained Earnings $379,900

Total Stockholder's Equity $799,700

Total Liability and Stockholder's Equity $957,700

Credit Sales - 75% are collected in quarter sale is made, 25% are collected in next quarter. The Accounts Payable Division has provided some guidance on how we pay our bills. 70% of each quarter's purchases are paid for in the current quarter, remaining is paid for in the subsequent quarter. All overhead (excluding depreciation) is paid in the quarter incurred. All selling and administrative expenses (excluding depreciation) are paid in the quarter. The Board has provided some guidance on how our cash should be managed. Required Minimum Cash Balance is $30,000 at the end of each quarter. Assume any borrowings occur on the first day of the quarter. To the extent possible, the company will repay principal and interest on the last day of the 4th quarter. The company's lender imposes a simple 3% interest rate per quarter on any borrowing. Dividends of $15,000 will be declared and paid in each quarter. Production and Inventory Assumptions: The company uses a LIFO inventory flow method. Each Quarter's Ending Inventory should equal 15% of next quarter's sales Each unit of Finished Goods requires 3.5 yards of raw materials that cost $3.00 per yard Each Quarter's Raw Materials Inventory should equal 10% of the next quarter's production needs. Estimated Ending Raw Materials Inventory on Dec 31, 2022 is 5,000 yards Direct Laborers are paid $18 per hour and paid in current quarter worked. Each unit of Finished Goods requires 0.25 hours to complete Overhead assumptions: Quarterly Fixed Manufacturing Overhead is $150,000, including $20,000 in equipment depreciation Number of Direct Labor hours is used as the allocation basis for the budgeted plantwide overhead rate. Budgeted Variable Factory Overhead per direct labor hour is $3.00 Budgeted Variable Selling and Administrative Expense is $1.25 per unit sold Fixed Selling and Administrative Expenses per quarter include: Advertising $25,000 Executive Salaries $64,000 Insurance $12,000 Property Taxes $ 8,000 Depreciation Expense $ 8,000