The Garden Ornament Company manufactures two types of garden ornament: a duck and a heron. The information presented in Tables T1 to T5 has been prepared, as a result of discussions by line managers, for the purposes of preparing a master budget for Year 6. Sales and production volumes and direct costs (T1) Ducks Herons Unit sales for the year 8,000 15,000 £ £ Unit selling price 30 45 Unit variable cost: Direct material 14 16 Direct labour 12 13 Direct labour costs are based on an average cost of £15,000 per person per year. Other costs (T2) Production heat and light £8,000 for the year Production fixed overheads £4,000 for the year Partners’ salaries £55,000 for the year Rent of premises £11,000 for the year Office staff salaries £48,450 for the year Marketing and distribution 18 per cent of sales Working capital targets (T3) Debtors at end of year Half of one month’s sales. Trade creditors for materials One month’s purchases. Stock of raw materials Enough for 60 per cent of next month’s production. Stock of finished goods No stock held, as goods are made to order and delivered to the customer on completion. Sales and purchases are planned to be spread evenly over the year. Capital budget plans (T4) Purchase one new moulding machine at £70,000, at the start of the year. Depreciate all machinery for a full year at 20% per annum on a straight-line basis. Balance sheet at 31 December Year 5 (T5) £ £ Equipment at cost 190,000 Accumulated depreciation 40,000 Net book value 150,000 Stock of raw materials: For 400 ducks @ £14 each 5,600 For 750 herons @ £16 each 12,000 Trade debtors 32,000 Cash 2,500 52,100 Trade creditors 30,000 22,100 172,100 Partners’ capital 172,100 Required Prepare a master budget and all supporting budgets.