Choose correct answer and Please show/explain answer 1. Bank loan officers would find which of the following budgets to be most important in determining whether or not to give a company a loan? a. sales budget b. production budget c. budgeted income statement d. budgeted balance sheet e. cash budget 2. Aces Company budgeted the following sales in units: January 30,000 February 20,000 March 40,000 Each unit requires 3 pounds of raw material. Diamonds policy is to have 20% of the following months production needs for materials in inventory. On January 1, the raw materials inventory equaled 11,000 pounds. Raw materials purchases budgeted for February in pounds equal: a. 72,000. b. 32,000. c. 91,000. d. 30,000. e. 54,000. 3. Diamond Company budgeted the following production in units for the first quarter of the year: January 30,000 February 20,000 March 40,000 Each unit requires 3 pounds of raw material. Diamonds policy is to have 20% of the following months production needs for materials in inventory. On January 1, the raw materials inventory equaled 11,000 pounds. Raw materials purchases budgeted for February in pounds equal: a. 72,000. b. 32,000. c. 91,000. d. 30,000. e. 54,000. 4. Desired ending inventory for January in pounds equals: a. 12,000 b. 6,000 c. 3,000 d. 4,000 e. 11,000 5. Belant Company budgeted 200,000 units for June, 210,000 for July and 300,000 for August. Each unit requires 0.25 direct labor hours. How many direct labor hours are budgeted for August? a. 50,000 b. 5,000 c. 75,000 d. 52,500 e. 300,000