The purpose of this term paper is to make bridge between the theoretical contents taught in this course with real world practice. The term report should be submitted in a group and each group should comprise of 3-5 members. Read the following case and prepare required budgets.HongBao dim sum is a new startup by fresh graduates from NSU who home deliver Dim Sums across Dhaka. They make dim sums using locally produced flour, yeast, chicken and all the other fresh ingredients of finest quality. They have two dim sums: the standard one Steamed Chicken dim sum and the customized one named Fried dim sum. The standard dim sums are prepared with antibiotic free chicken along with other ingredients and the customized dim sums add number of options that are customized as per customer demand and are deep-fried. For the second quarter of 2021, estimated sales in units for each product line are as follows: MonthStandard (in plates)Customized (in plates) April 1,000 350 May 1,150 400 June 1,200 450 July 1,560 500 August 1,800 550 The CEO of the HongBao Dim Sum provided you with the following additional information: Sales: The actual sales for February and the forecasted sales for March were Tk. 1,050,000 and Tk. 1,200,000 respectively for the standard units. The relevant numbers for the customized ones are Tk. 500,000 in February and Tk. 650,000 in March. HongBao dim sum prices the standard dim sums at Tk. 400 per plate of 8 pcs and Tk. 800 per plate of 8 pcs. Inventory Policy: The Company believes in customer satisfaction and therefore doesnt store any ready products. Rather theyre using lean production process where theyre producing on demand. Production requirements: The standard dim sums require 250 gm of chicken per plate and the customized ones require 350 gm of chicken. Chicken costs Tk. 380 per Kg. The cost of all other material is Tk. 120 per plate for standard units and Tk.200 for the customized units. The standard unit requires 0.50 direct labor hours per unit and the customized ones require 0.75 hours of labor time. Labor cost per hour is Tk. 200. Fixed Manufacturing Overhead is expected to be Tk. 60,000 per month, of which Tk. 22,000 for non-cash depreciation. HongBao applies manufacturing overhead to units based on direct labor hours and the variable manufacturing overhead rate is Tk. 25 per direct labor hours. Inventory policy-raw materials: Chicken is the main ingredient of Dim Sums. With regard to the chicken used in production, HongBao likes to keep safety stock of 50% of its need of chicken for the next months anticipated production. HongBao ended March, 2021 with 186 Kg of meat in stock. Payables Policy: HongBao signed an MOU with Bengal Meat where Bengal Meat agrees to supply all the meat needs on credit. According to the credit policy of Bengal meat for HongBao, half of the monthly purchase is due on the month of purchase and the rest of the due is settled in following month of purchase. Accounts payable for materials and other items were expected to be Tk. 105,000 on March 31, 2021. Costs of all other materials are purchased on a cash basis during the month of purchase according to the monthly production need. Collection policy: HongBao mainly delivers their products to corporate offices, hence offering credit term to attract corporates. For both the standard and customized units, 40 percent of any months sales are for cash. 10 percent of the credit sales are collected in the month of sale, 70 percent of credit sales are collected the following month and the rest of the dues are collected in the second month following the month of sales. Sales and Administration costs: Monthly manufacturing expenses consist of the following: Salaries and wages: Tk. 75,000 Commissions: 6% of revenue Rent: Tk. 50,000 Utilities: 4% of revenue Cash and financing: HongBao expects to maintain a minimum cash balance of Tk. 300,000. Borrowing can make up any anticipated cash shortage at 10% annual interest. Bank will only lend (and accept repayments) in Tk. 1000 increments. Cash balance to start the quarter is Tk. 350,000 Other information: HongBao will make a payment of Tk. 400,000 during May for equipment purchased on credit on April. The company also plans to pay dividends of Tk. 250,000 in April Prepare the following schedules: i. Expected cash collections ii. Expected cash disbursements for materials