Luapula Components Company $($LCC$)$ is in the process of preparing budgets for $2023$ and quarterly sales forcasts have been estimaated as follows:

Quater Forecust

sales unit

$1$ year $20231,200$

$2$ year $2023900$

$3$ year $20231800$

$4$ year $20231,350$

$1$ year $20241,440$

Budgeted selling price for each units is K$125$

It is LCC$\text{'}$s policy to hold inventory of finished goods at the end of each quarter equal to $15\%$ of the following quarter"s sales demand and inventory of raw material equal to $20\%$ of the following quarter's raw material production requirement.The inventory at the beginning of the budget period is expected to meet this policy.

The production shedule shows that each unit requires $2$kgs of direct materials cost at K$5$ per Kg to be made.

Required:

$($a$)$ Prepare the following budgets for $2023$

Sales budget in quantity and value for each quarter.

Production budget in quantity for each quarter.

Raw material usage budget in quantity for each quarter.

Raw material purchases budget in quantity and value for the first three quarters.

$($b$)$ Explain the principal budget factor clearly giving its example.

$($c$)$ Explain the difference cash profits and accounting profits.