In 2012, Barney and Co. saw a decrease in sales of 20%. The company had also recently purchased equipment to increase productivity, but has incurred the additional expense of paying back the loan for equipment. The loan makes up for 5% of the companys total expenditures for the period (1 year).In a 4-5 page paper, please provide the following: Three potential budgeting solutions in response to a decrease in sales (Use specific budget types to address this question).Include how the company plans to accommodate for the decrease in sales. Create a budgeting plan for 2014.Also give at least one suggestion for maximizing the budget in response to the equipment purchase.APA format Additional Help Types of BudgetsBudgets are designed to help management plan for future events. Budgets help evaluate performance and detect potential financial issues before they arise. The budgeting process also coordinates activities between departments and is broken down into several different types.Master BudgetThe master budget is comprised of several interrelated budgets that indicate a plan of actions and is presented for a specific period of time (monthly, yearly, etc.).http://smallbusiness.chron.com/prepare-master-budget-business-10293.html#gsc.tab=0Sales BudgetThe sales budget is the first budget that is created. The sales budget is created by an earlier sales forecast that gives an estimate of expected revenue for a period.http://accounting-financial-tax.com/2008/08/sales-budget/Production BudgetThe production budget gives an indication as to how many units are to be produced to meet sales goals.http://accounting-financial-tax.com/2008/08/production-direct-material-direct-labor-factory-overhead-budget/Direct Materials BudgetThe direct materials budget gives information relating to the quantity and cost of the items that will be used for production.http://accounting-financial-tax.com/2008/08/production-direct-material-direct-labor-factory-overhead-budget/Manufacturing Overhead BudgetThe manufacturing overhead budget gives information relating to the expected manufacturing costs for a period. The budget shows the different fixed and variable cost amounts.http://accounting-financial-tax.com/2008/08/production-direct-material-direct-labor-factory-overhead-budget/Selling and Administrative BudgetThe selling and administrative budget shows a projection of anticipated operating expenses relating to sales and office personnel. This budget also shows the different fixed and variable cost amounts.http://accounting4management.com/selling_and_admn_expenses_budget.htm