Wisconsin Cheese provided the following pro forma balance sheet is available for the end of the first quarter of 2018:AssetsLiabilities and EquityCash$58,000Accounts Payable$206,390Accounts Receivable$484,640Short-term Notes Payable$30,000Raw Materials Inventory$91,290 Total Current Liabilities$236,390Finished Goods Inventory$393,304Long-term Note Payable$525,000 Total Current Assets$1,027,234 Total Liabilities$761,390Equipment, gross$636,000Common Stock$353,000Accumulated Depreciation($168,000)Retained Earnings$380,844 Equipment, Net$468,000Total Stockholders Equity$733,844Total Assets$1,495,234Total Liabilities & Equity$1,495,234Use the following information to prepare a master budget for April, May, and June of 2018:1) Sales for March 2018 were 23,300 units. Wisconsin budgeted sales of 258,000 units for the entire year and forecasted the following monthly sales for the second quarter: April 23,300 units; May 17,000 units; June 21,900 units. Budgeted sales for July is 23,300 units. The selling price per unit is $26.00 and the total product cost per unit is $21.10.2) Company policy requires that the balance in the ending finished goods inventory account at the end of any given month should be equal to 80 percent of the next months expected unit sales. The balance in the ending finished goods inventory account on March 31 complies with company policy and includes 18,640 units.3) Company policy requires that the balance in the ending raw materials inventory account at the end of any given month should be equal to 50% of the next months materials requirements. The March 2018 ending raw materials inventory complies with company policy and consisted of 4,565 units. The company expects ending raw materials inventory on June 30 to include 5,800 units. Wisconsin pays $10 per unit for raw materials and uses 1.0 units of raw materials to make one unit of product.4) The company pays production workers $14 per hour; each unit of product requires 0.5 units of direct labor.5) Wisconsin Cheese allocates overhead based on direct labor hours and uses a predetermined variable overhead rate of $4.50 per hour. Wisconsin treats $38,360 of depreciation as fixed factory overhead.6) Sales representatives earn a commission of 10 percent of total sales and are paid in the month of the sale. The sales managers salary is fixed at $4,800 per month.7) Administrative employees are paid $30,000 per month, and the company is responsible for 0.8 percent monthly interest on the long-term note payable. Both expenses should be included in the general and administrative expenses budget.8) The company expects 20 percent of sales to be cash sales and the remaining 80 percent of sales to be credit sales. The company collects all account receivables in full in the month following the sale. 9) Raw materials are purchased on credit, and no payables arise from any other transactions. The company pays account payables in full in the month following the purchase.10) The minimum ending cash balance at the end of any given month is $58,000. If required, Wisconsin borrows enough cash using a short-term note to reach the minimum. Short-term notes require an interest payment of 1 percent at the end of each month before any repayment. If the ending cash balance exceeds the minimum, the excess should be applied to any outstanding short-term note balance.11) Wisconsin plans to declare and pay a $28,000 dividend in May.12) The company does not plan to make any income tax payments in the second quarter; however, income tax will be assessed at 40 percent at the end of the second quarter and paid in the third quarter. 13) The company plans to purchase new equipment at the end of June for $148,000.Prepare the following:Sales BudgetProduction BudgetDirect Materials BudgetDirect Labor BudgetFactory Overhead BudgetSelling Expense BudgetGeneral and Administrative BudgetCash Receipts and DisbursementsCash BudgetPro Forma Quarterly Income StatementPro Forma Quarterly Balance Sheet