Waterways Corporation is preparing its bodget for the coming year, 2025. The first step is to plan for the first quarter of that coming year, The company has zathered intomation from its managers in preparation of the budgeting process. Waterways likes to krep 10x, af the next month's unit sales in ending inwentory. Alf salos are or account. B5 af the Accounts Aeceivable are collected in the month of sale, and 15% of thi Accounts Recelvable are collected in the month after sale. Acceunts rechwabli on December 31,2024 , totaled $181,800 Direct Materials Derect materiak cost 80 cents per pound. Two pounds of direct materidls are required to produce each unit. totaled 11.390 goundi. Payment for materials is made within 15 dams, 503 is paid in the month of purchase, and 50N is paid in the month after purchaie. Accounts Pyrablo on December 31. 2024, totaled $120.595. Labor requires 12 minutes per unit for completion and is paid at a rate of $6 per hour. Other Information The Cash balance on December 31, 2024, totaled $100,000, but management has decided it would like to maintain a cash balance of at least \$800,000 beginning on January 31, 2025. Dividends are paid each month at the rate of $250 per share for 5,360 shares outstandirg. The company has an open line of credit with Romney's Bank. The terms of the agreement requires borrowing to be in 51.000 increments at 6% interest. Watenways borrows on the first day of the month and repays on the last day of the moeth A $450,000 equipment purchase is planned for February. WATERWAYS CORPORATION Production Budget First Quarter January February