The DiamondStone Company manufactures touring tires for motorbikes. DiamondStone sells tires for $55 each. DiamondStone is planning for the next year by developing a master budget by quarters. DiamondStone's balance sheet for December 31, 2020, follows: Assets Current Assets: Cash $ 20,000 Accounts Receivable 25,000 Raw Materials Inventory 3,000 Finished Goods Inventory 5,800 Total Current Assets $ 53,800 Property, Plant, and Equipment: Equipment 175,000 Less: Accumulated Depreciation (57,000) 118,000 Total Assets $ 171,800 Liabilities Current Liabilities: Accounts Payable $ 5,000 Stockholders' Equity Common Stock $125,000 Retained Earnings 41,800 Total Stockholders' Equity 166,800 Total Liabilities and Stockholders' Equity $ 171,800 ...date.iw.... T. 2. Budgeted sales are 700 tires for the first quarter al ceported to increase by 50 nines per quarter. All sales are on account b. Finished Goods Inventory on December 31ces of 200 tires 29 each. Desired ending Finished Goods Inventory is 20 of the next quarter's sales, fins quenter sales for 2022 are expected be 900 timer d. Each tire requires 3 pounds of rubber, is costs $3 perpunt e Desired ending Raw Materials inventory s 20% of the best quarter's direct materials needed for production desired ending inventory for December 31, 2022 is $900. The company started 2021 with 600 pounds of matonals at the cost of SS each Each tire requires 6.40 hours of direct laber, Ginect laber comes average 510 per hour. The company applies a layoff policy Variable manufacturing overhead is $13 per labore h. Fixed manufacturing overhead includes $3,000 per quanto in depreciation and S1.770 per quarter for other costs, such as insurance i. Fixed selling and administrative expenses include 7.500 per quarter for salaries, 53,150 per quarter for rent: $1.500 per quarter for insurance and 2.000 per quanter for depreciation J. Variable selling and administrative expenses as 51 per united Capital expenditures include 547.000 for new macturing equipment to be purchased and paid in the first quarter. Another $25,000 cash purchase of aiment will be made in quarter 4 1. Cash receipts for sales on accountare 65% in the quarter of the sale and 39% in the quarter following the sale: December 31, 2020, Accounts Receivable is received in the first quarter of m. Direct materials purchases are paid 75% in the quartet purchased and 25% in the following quarter December 31, 2030, Accounts Payable is paid in the first quarter of 2021. n. Direct labor, manufacturing overhead, and selling and distrative costs are paid in the quarter incurred Common Stock at year end 2021 will be $122.8789 p. DiamedStone desires to maintain a minimum cand balance of 5.000 and borrows.from the local bank as needed in increments of $1.000 at the beginning of the quarter principal repayments are made at the beginning of the quarter when cucer funds are available and in inctements of S1,000, interest is 12% per year and paid at the beginning of the quarter based on the amount outstanding from the previous que Requirements 1. Prepare DiamondStone's operating budget and can botiget for 2021 by quarter Required schedules and budgets include: sales botiet, product butiget, direct materials budget direct labore budget, manufacturing overhead budget, cost of goods sold budget. selling and administrative expense bodget cash collections of sales, cash payments for materials, and cash budget. Manufacturing overhead costs are allocated based on direct labore hours 2. Prepare Diamond Stone's annual financial bodget for 2021, including budgeted income statement and budgeted balance sheet