The first picture is the problem and the other ones are where the answers go

Storm Tools has formed a new business to produce battery-pow of selected assets and obligations from the owners. The initial balance sheet on January 1 contained cash (S500,000), plant and equipment (S2,500,000), notes payable to the owenrs (S1,000,000), and equity ($2,000,000) ered drills. The business was formed by the transfer The business is expected to repay the note at $50,000 per month, plus all accrued interest at 1/2% per month. Payments are made on the last day of each month. The business is scheduled to produce 25,000 drills during January, next three months. Each drill requires S40 of raw materials. Raw materials are purchased on account, and paid in the month following the month of purchase. The plant manager has established a goal to end each month with raw materials on hand, sufficient to meet 25% of the following month's planned production. with an increase of 2,500 units per month for the The business expects to sell 20,000 drills in January; 25,000 in February, 25,000 in March, and 30,000 per month thereafter. The selling price is S100 per drill. Half of the drills will be sold for cash through a website. The others will be sold to retailers on account, who pay 40% in the month of purchase, and 60% in the following month. Uncollectible accounts are not material Each drill requires 20 minutes of direct labor to assemble. Labor rates are $24 per hour. Variable factory overhead is applied at $9 per direct labor hour. The fixed factory overhead is $25,000 per month: 60% of this amount is related to depreciation of plant and equipment. With the exception of depreciation, all overhead is paid as incurred. Selling, general, and administrative costs are paid in cash as incurred, and consist of fixed components (salaries, $100,000, office, $40,000, and advertising, $75,000) and variable components (15% of sales) Prepare a monthly comprehensive budget plan for Storm's new business for January through March. The plan should include the (a) sales budget, (b) production budget, (c) direct materials purchases budget, (d) direct labor budget, (e) factory overhead budget, (f) ending finished goods budget (assume total factory overhead is applied to production at the rate of S11.73 per direct labor hour), (g) SG&A budget, and (h) cash budget. Sales Budget For the Three Months January to March January February March Expected Cash Collections From Sales 6 STORM TOOLS Production Budget For the Three Months January to March 0 January February March 6 9 STORM TOOLS Direct Materials Budget For the Three Months January to March January February March Expected Cash Payments for Materials Purchases STORM TOOLS Direct Labor Budget For the Three Months January to March January February March STORM TOOLS