This group project requires the use of EXCEL spreadsheets to prepare various budgets for a manufacturing company. For this purpose, the class is asked to form groups of 3-4 students and allocate the task among them equitably. It is important that all participants contribute to the effort and share the overall task. All the facts and figures about the company's operations are supplied below: Sprinkler Corporation produces plastic garden sprinklers. The company is preparing its budget for 2015. The first step is to plan for the first quarter of that coming year. Sprinkler has collected the following information from the managers. 1. Sales: Sprinkler likes to keep 10% of next month's unit sales in ending inventory. All sales are on credit. 85% of the accounts receivable are collected in the month of sale and 15% of the accounts receivable are collected in the month after sale. Accounts receivable on December 31,2014 , totaled $183,780. 2. Direct Materials: 2 pounds of direct materials is needed to produce one unit. Sprinkler likes to keep 5% of the materials needed for the next month's production in its ending inventory. Raw materials on hand on December 31, 2014, totaled 11,295 pounds. Payment for materials is made within 15 days. 50% is paid in the month of purchase, and 50% is paid after the month of purchase. Accounts payable on December 31, 2014, totaled $120,595. 3. Direct Labor Labor requires 12 minutes per unit for completion and is paid at a rate of $8 per hour. 5. Selling and Administrative expenses The cash balance on December 31, 2014, totaled $100,500, but management has decided it would like to maintain a cash balance of at least $800,000 beginning on January 31, 2015. Dividends are paid each month @ $2.50 per share for 5,000 shares. The company has an open line of credit with national Bank. The terms of the agreement require borrowing to be in the increments of $1,000, and the interest rate is 8%. Sprinkler borrows on the first day of the month and repays on the last day of the month if possible. A $500,000 equipment purchase is planned for February 2015. Required: Do the following for the first quarter (January, February \& March) of 2015 by using EXCEL spreadsheet: (a) Prepare a Sales Budget (b) Prepare a Production Budget (c) Prepare a Direct Materials Purchase Budget (d) Prepare Direct Labor Budget (e) Prepare manufacturing Overhead Budget (f) Prepare Selling and Administration Budget (g) Prepare Schedule of expected cash collections from customers (h) Prepare a schedule for expected cash payments for materials purchases (i) Prepare a Cash Budget