The Grayson Tire Company manufactures racing tires for bicycles. Grayson sells tires for $75 each. Grayson is planning for the next year by developing a master budget by quarters. Grayson's balance sheet for December 31, 2024, follows: Other data for Grayson Tire Company: (Click the icon to view the other data.) (Click the icon to view the balance sheet.) Read the requirements. Requirement 1. Prepare Grayson'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. Begin by preparing the sales budget. Grayson Tire Company Sales Budget For the Year Ended December 31, 2025 First Second Quarter Quarter Third Quarter Fourth Quarter Total Budgeted tires to be sold 1,600 75 $ 1,800 75 $ 2,000 75 $ 2,200 7,600 75 $ 75 Sales price per unit Total sales Prepare the production budget. 120,000 $135,000 $150,000 || $ 165,000 $570,000