The Gider Tire Company manufactures mcing tres for bicycles. Gilder sells lires for $75 each. Gider is planning for the next year by developing a manter budgot by quarters. Gilder's bulance sheet for December 31, 2024, follows: Oeher data for Glider Tire Company: (Click the icon to view the balance sheet) (2) (Click the icon lo view the other data.) Read the requirements. Manulacturing overhead costs are allocated based on direct labor hours. Round all calculations to the nearest dollar. Begin by proparing the sales budget. Prepare the production budget. Reverw the sales budoet vou prenared abore. Data table Requirements 1. Prepare Gilder's operating budget and cash budget for 2025 by quarter. Required schedules and budgets include: sales budget, production budget, direct materials budget, direct labor budget, manufacturing overhead budget, cost of goods sold budget, selling and administrative expense budget, schedule of cash receipts, schedule of cash payments, and cash budget. Manufacturing overhead costs are allocated based on direct labor hours. Round all calculations to the nearest dollar. 2. Prepare Gilder's annual financial budget for 2025 , including budgeted income statement and budgeted balance sheet. (Unless otherwise noted, assume all of the following events occurred during 2024 and that any balances given are stated as of December 31, 2024.) a. Budgeted sales are 1,300 tires for the first quarter and expected to increase by 200 tires per quarter. Cash sales are expected to be 40% of total sales, with the remaining 60% of sales on account. b. Finished Goods Inventory on December 31, 2024 consists of 500 tires at $36 each. c. Desired ending Finished Goods Inventory is 40% of the next quarter's sales; first quarter sales for 2026 are expected be 2,100 tires. FIFO inventory costing method is used. d. Raw Materials Inventory on December 31,2024, consists of 1,000 pounds of rubber compound used to manufacture the tires. e. Direct materials requirements are two pounds of a rubber compound per tire. The cost of the compound is $7.00 per pound. f. Desired ending Raw Materials Inventory is 10% of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2025 is 1,000 pounds; indirect materials are insignificant and not considered for budgeting purposes. g. Each tire requires 0.80 hours of direct labor; direct labor costs average $8 per hour. h. Variable manufacturing overhead is $1 per tire. i. Fixed manufacturing overhead includes $3,000 per quarter in depreciation and $35,755 per quarter for other costs, such as utilities, insurance, and property taxes. j. Fixed selling and administrative expenses include $12,500 per quarter for salaries; $1,800 per quarter for rent; $1,650 per quarter for insurance; and $1,000 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 3% of sales. 1. Capital expenditures include $20,000 for new manufacturing equipment, to be purchased and paid in the first quarter