You are a new fashion designer launching Jan 2010, selling to boutiques. You have $200,000 cash to launch. 2010 Estimates: Quarterly unit sales: Q1: 1,000; Q2: 3,500; 23: 3,400; 04:3,700 . Selling price: $200 per unit Made for us by two suppliers (NY & LA): we pay $140 per unit Distribution costs: $7 per unit . Other costs all fixed): $150,000 for the year Q1: 40%; Q2: 15%; Q3: 15%; 04: 30% . Ignore taxes Desired ending inventory: Q1: 350; Q2: 340; Q3: 370; 04: 390 Required: 1) Construct the Budgeted Income Statement for 2010 2) Construct the Sales Budget by Quarter for 2010 3) Construct the Purchasing Budget by Quarter for 2010 4) Construct the Budget for Cash Flow From Operations by Quarter for 2010 5) Construct the Cash Budget by Quarter for 2010 A lot of customers are asking to pay by credit instead of cash. The following assumptions are made if sales were made with a mix of cash and credit: Cash sales 5% Credit sales 95% Of credit sales, collected: Same quarter as sale Next quarter as sale Two quarters after sale Uncollected 35% 40% 22% 3% 6) Construct the Budget for Cash Collections from Sales by Quarter for 2010 7) Construct the Revised Budget for Cash Flow from Operations by Quarter using the new sales mix. 8) Construct the Revised Cash Budget by Quarter for 2010