Beisswanger Company is preparing a master budget for 2023. Relevant data pertaining to its sales and production budgets are as follows:

● Sales for the year are expected to total $1,200,000. Quarterly sales, as a percentage of total sales, are expected to be 20%, 25%, 30%, and 25%, respectively.

● The sales price is expected to be $50 per unit for the first three quarters and $60 per unit for the fourth quarter and later. Sales in the first quarter of 2024 are expected to be 10% higher than the budgeted volume for the first quarter of 2023.

● Of all sales, 10% are cash sales and the remaining 90% in each quarter are credit sales. Of the credit sales, 50% are collected in the same quarter as the sale is made, 40% are collected in the following quarter, and 10% are deemed to be uncollectible.

● The accounts receivable balance at 1/1/23 was $200,000 before uncollectible sales were written off.

● Management desires to maintain an ending finished goods inventory each quarter that represents 25% of the next quarter’s budgeted sales volume.

● Each unit is purchased from the vendor at $10 per unit, and all units are purchased on credit.

● Of the inventory purchased each quarter, 60% of the credit purchase is paid for within the same quarter and 40% is paid in the following quarter.

● The balance in accounts payable as of 1/1/23 was $75,000.

a. Prepare a sales and cash collections budget for 2023.

b. Prepare a purchases and cash disbursements budget for 2023.

c. What is the gross margin for each quarter?