(A)Oracle and company is to commence business as a retail store, specializing in wooden furniture, on 1^st April. The store is operated by its owners, Mary and Simon Oracle supported by casual staff.

The Sales budget for Oracle and company for April to July shows:

$

April51,600

May45,600

June49,200

July46,800

Oracle and company has a mark-up of 100% on cost. Management has a policy that beginning inventory is to be 120% of cost of sales for each month.

You are required to prepare the purchases budget and the Cost of goods sold budget for three months ending 30 June for Oracle & Co (Excel sheet)

(B) Expense details for Oracle and company are listed below. This information will be used to illustrate the marketing expenses budget, the administration expenses budget and the financial expenses budget for the three months ending 30 June. You are required to prepare expense budget (Use Microsoft Excel) for the quarter.

Casual salesperson's wages$28,800 pa apportioned equally each month

Sales commissions5% of sales

Advertising2% of sales

Stationery$720 pa apportioned equally each month

Telephone$1,440 pa apportioned equally each month

Superannuation9% of total payroll

Worker's compensation insurance 8% of total payroll

Rent$25,920 pa apportioned equally each month

Accountancy fees$2,160 pa apportioned equally each month.

Depreciation (straight line method)

Motor vehicle20% pa on cost of $54,000

Shop fittings15% pa on cost of $36,000

Office furniture & equipment15% pa on cost of $19,200

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Interest on loan

April$720

May$704

June$688

Bank charges$576 pa apportioned equally each month.