You have recently been hired as a new managerial accountant for Organic Life Manufacturing Inc.. The company manufactures and distributes to retailers across North America a patented nutrition drink in four tasty flavours. You have been asked by the company Controller, Emily Seguin, to complete the following planning and control requirements while she is away at an industry conference next week. Required: Based on the sales assumptions provided by Emily in the Assumptions worksheet, as well as the remaining assumptions provided to you in Budgeting Assignment Instructions you have been asked to complete the 2022 master budget which will allow further cost-volume-profit analysis upon Emily's return. ASSUMPTIONS Organic Life Manufacturing Inc. Balance Sheet As at December 31, 2021 Assets Liabilities & Shareholders Equity Current Assets Current Liabilities Cash $ 38,000 Accounts Payable $ 32,100 Accounts Receivable 64,000 Cost per unit Income taxes payable 6,200 Raw Materials Inventory 170,000 grams 5.100 $0.03 Bank loan payable 15,000 Finished Goods Inventory 1,500 cases 13,350 $8.90 53,300 Total current assets 120.450 Land, buildings and equipment Land 100,000 Shareholders' Equity Buildings and equipment $ 860,000 Common shares 225,000 Less: Accumulated Depreciation 180,000 680.000 Retained Earnings 622,150 Total land, buildings and equipment 780,000 Total shareholders' equity $47,150 Total assets $ 900.450 Total liabilities and shareholders' equity $ 900.450 Quarter 2022 2023 First Second Third Fourth First Second Estimated Sales Units (cases of 24 Organic Life cans) 25,910 22,000 23,000 24.000 25,000 26.000 Selling Price per unit Collection of credit sales collected in the quarter of sale collected in the following quarter Accounts Receivable Dec. 31, 2021 will be collected in the first quarter of 2022 Desired Minimum Inventories Finished Goods of next quarter's sales in units Direct Materials of next quarter's Direct Materials (in grams) to meet production (in units)Fixed Costs per quarter Factory Rent Factory Insurance Supervisory Salaries Depreciation Pament assumptions Direct Material Purchases quarter of purchase Direct Material Purchases quarter following the quarter of purchase Accounts Payable Dec. 31, 2021 will be paid in the rst quarter of 2022 Direct Labour month expensed f incurred Variable Manufacturing Overhead month expensedf incurred Fixed Manufacturing Overhead month expensedf incurred Variable Selling & Administrative month expensedf incurred Fixed Selling 3:. Administrative varies see below Selling & Administrative Costs: Variable: Sales Commissions per unit sold Expense per Cash Disbursements per Quarter Fixed : Quarter First Second Third Fourth Advertising Executive salaries Insurance Property taxes Depreciation Cash 3:. Financing: Minimum Opening Cash Balance each quarter before interest payments on bank line of credit Financing: Maximum Revolving Bank Line of Credit Line of Credit borrowings assumed to occur, when necessary, at the beginning of the quarter Line of Credit repayments assumed to occur, when possible, at the end of the quarter annual interest rate paid at the end of quarter based on the line of credit balance at the beginning of the quarter Quarterly interest rate S!gr_ter of Pament Other Purchases Expenses and Payments First Second Third Fourth Equipment Purchases Cash Dividends Income tax instalmentsfpayments Income tax expense (remd) of Quarterly Net Income before income tax expense Organic Life Manufacturing Inc. Sales Budget For the year ending December 31, 2022 Quarter 2023 First Second Third Fourth Total First Second Total Sales Schedule of Cash Collections Quarter First Second Third Fourth Total Total Collections Organic Life Manufacturing Inc. Production Budget For the year ending December 31, 2022 Quarter 2023 First Second Third Fourth Total First Second Production units