Collect All Ltd is preparing a quarterly budget covering the 3 months ending 30 September 2025. The information available for the budget is as follows.

1. Cash sales represent 80% of all monthly sales; credit sales are collected in the month after sale.

2. Inventory purchases that are made on account equal 60% of the sales forecast for that month; 30% of the purchases are paid for in the month of purchase, and 70% are paid for in the following month.

3. Ending inventory on 30 September 2025 is projected to be $57 800.

4. Equipment purchases at the end of September are budgeted at $95 000.

5. Other quarterly expenses are budgeted as follows: administration expenses, $14  700; utilities, $55  000; salaries, $154  000; stationery, $4800. These expenses are paid when incurred.

6. Depreciation for the quarter is $18 000.

7. The statement of financial position as at 1 July 2025 will have the following account balances.

8. Budgeted sales are July, $295  000; August, $272  000; September, $330 000.

Required Prepare a budgeted statement of financial performance and statement of financial position for the quarter ending 30 September 2025. Ignore income tax.

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Cash at bank Accounts receivable 18 200 Inventory Building $87 960 Accumulated depreciation $94.000 Accounts payable 85 370 60 400 Share capital 150 000 290 000 Retained earnings 127 190