The following information applies to the 2021 Financial Balance Sheet for LMN Manufacturing: LMN Manufacturing produces a single product that is popular with outdoor recreation enthusiasts. The company sells its product to retailers throughout the northeastern quadrant of the United States. It is in the process of creating a master budget for 2022 and reports a balance sheet at December 31, 2021 as follows:

\fLMN Manufacturing Direct Materials Budget For the Year Ended December 31, 2022 Quarter .b Tota | Required production in units Quantity of raw materials needed per unit 3.50 Quantity of raw materials needed to meet production Add desired quantity of ending ram.r materials inventory 5,000 Total quantity of ram.r materials needed 5,000 Less quantity of beginning rawr materials inventory 4,500 5 O 0 Quantity of raw materials to be purchased I I 3.25 1,625 Cost of raw materials per yard U1 H I U?- [NJ I U?- W I {.0- I 'U'h Cost of raw materials to be purchased Schedule of Expected Cash Disbursements for Purchases of Materials Beginning accounts payable First quarter purchases Second quarter purchases 'hird quarter purchases Fourth quarter purchases 'otal cash disbursements for materials LMN Manufacturing Direct Labor Budget For the Year Ended December 31, 2022 Quarter Required production in units Direct labor hours per unit Total direct labor hours needed Direct labor cost per hour Total direct labor cost LMN Manufacturing Selling and Administrative Expense Budget For the Year Ended December 31, 2023 Quarter Budgeted units sales {Schedule 1} Variable Selling 8: administrative expense per unit Total Variable selling and administrative expense Fixed selling and administrative expenses: Advertising Executive Salaries Insurance Property taxes Depreciation 'otal fixed selling and administrative expenses "otal selling and administrative expenses Less: depreciation Cash disbursements for selling and administrative expenses - - - - - LMN Manufacturing Cash Budget For the Year Ended December 31. 2023 Quarter Beginning cash balance Add cash receipts: 5 . |||||| iii: collections from customers _____ Total cash available _ l ,a.|-..||||| Less cash disbursements: Direct materials Direct labor Manufacturing overhead Selling and administrative Dividends Total cash disbursements Excess [defiencyi of cash available aver disbursements |5||5|||||||||||||| ||5||||||5|| |||||||||||||||||||||||||||||||||||||||| |||||||||||||||||||||||||||||||||||| Financing: Borrowings [at the beginning of quarters] Repayments {at end of the year enter as a negative number} Interest [per quarter enter as a negative numbers} Total financing Ending cash balance LMH Manufacturing Budgeted insome Statement For the her Ended December 31, 21.122 [Absorption ousting buts] Sales Cost of goods sold Gross margin Selling and Administrative Expenses Net operating income Interest expense Net income