Dimash Inc.is a recreational outfitterthatprovidesqualityproducts based around fun and water. The Company is now consideringexpanding its offerings to include specialty touring kayaks. KayakBy Designconceptgrew out of inspirationand experienceof itsresident sportsman and craftsman, Dimash Kudaibergen. Long beforethe paddle enters the water,each Kayak design begins with a penstroke.With prototype in hand, the goal now is toopen a KayakDesign and Sales Centeron January1, 2021. To make the decision,Dimash planning grouprequires a master budget for the center’sfirst quarterof operation (i.e., January, February, Marchof2021).

Requirements:Based on the following estimates, you are asked toconstruct athree-monthmaster budgetfor the months January,Februaryand March.

a.The Company ownerswill contribute $50,000 cash to get thiscenter started.

b.Itscapital expenditures projection requirethat theCompanypurchase $328,000 of equipment on January 2forthe newcenter. The equipment supplier allows a thirty-day trial period.The company expectspay for the equipment on or before January 31.The equipment is expected to have a 10-year useful life and a$28,000 salvage value.

c.Market research and various meetings with sales staff hasproduced the following sales projections:January1,000kayaksFebruary1,500 kayaksMarch750 kayaksApril750 kayakEach Kayakis priced to sell at $950. 50% of the sales will be cash and 50%will be credit. Prepare a sales budget.

d.The company expects to collect 30% of accounts receivable inthe month of sale and 70% of accounts receivable in the monthfollowing the sale. Prepare a schedule of expected cashreceipts.

e.Use the information developed in requirements b and cabove todetermine the amount of accounts receivable on the March31 proforma balance sheet and the amount of sales on the first quarterpro forma income statement.

f.The company policy is to have finished goods ending inventoryof Kayaks in a month equal to 20% of the next month’s anticipatedsales. Prepare a production budget

g.Production of each kayak requires 54 pounds of polyethylenepowder and a finishing kit (rope, seat, hardware, etc.). Thecompanypolicy is that the ending inventory of polyethylene powdershould be 25% of the amount needed for production in the nextmonth. The finishing kits can be assembled as they are needed. Thecompanyonlymaintainsa small inventory of the finishing kits, 10% ofthe number needed for production in the next month. Thepolyethylene powder used in these kayaks costs $1.75 per pound, andthe finishing kits cost $190 each. Prepare a direct materialsbudget.

h.Materialsinventory purchases will all be on account. Thecompany would pay 80% of accounts payable in the month of purchase.It will pay the remaining 20% in the following month. Prepare aschedule of expected cash payments for inventory purchases.

i.Production of a single kayak requires 2 hours of time by moreskilled type I employee and 3 hours of finishing time by lessskilled type II employees. Type I employees are paid $22per hour,and type II employees are paid $14per hour. Prepare a laborbudget.100% of direct labor is paid in the month incurred.

j.Manufacturing overhead is assigned at 150% of labor costs.Depreciation on equipment is included in the assigned overhead(i.e., covered by the 150% rate). Prepare a manufacturing overheadbudget.Manufacturing overhead, except depreciation, is paid inthemonth incurred.

k.Use the information developed in requirementsaboveto determineCost per Kayakand thetotalamount of cost of goods sold on the firstquarterpro forma income statement and the amounts of endinginventory and accounts payable on the March 31pro forma balancesheet.

l.Budgeted monthly selling and administrative expensesare:Variable Costper unit sold* $45 Fixed Cost Salary Expense20,000 Rent 4,500 Utilities1,400Miscellaneous1,350 Insurance500 *Variable cost of $45 includes sales commission of $15 per unitsold.Prepare a selling and administrative expense budget.

m.Sales commission and utilities are paid in the month afterthemonth in which they are incurred. All other expenses are paid inthe month in which they are incurred. Prepare a schedule of cashpayments for selling and administrative expenses.

n.The company is subject to 20% income tax.

o.Use the information developed in requirements abovetodetermine the amount of sales commissions payable, utilitiespayable, and accumulated depreciation on the March31 pro formabalance sheet and the amount of selling andadministrative expenseon the first quarter pro forma income statement.

p.Using a line of credit, the companyborrows and repaysprincipal in increments of $1,000 on the last day of the month asneeded. It pays interest of 0.5percent(i.e. half of 1%))per monthin cash on the last day of the month. Company policy is to maintainan ending cash balance of at least $20,000. Use this and otherinformation developed inrequirements aboveto prepare a cashbudget.

q.Use the information developed aboveto determine the cash flowsfrom operating, investing, and financing activities on the firstquarterpro forma Statement of Cash Flows(SCF), the interest expenseon the first quarterpro forma Income Statement(I/S)andthe amount ofthe ending cash balance and the line of credit liability on theMarch31pro forma Balance Sheet(B/S).Prepare these documents (SCF,I/S, B/S) in good for

I only need M-Q, i figured youd need the rest tho.Thank you!