The summarised balance sheet of Newland Traders at 30 May 19X7 was as follows:

Required:

(a) Sales and purchases budgets and budgeted trading and profit and loss accounts for the six months ended 30 November 19X7.

(b) A budgeted balance sheet as at 30 November 19X7.

(c) A cash flow budget for the six months ended 30 November 19X7 indicating whether or not it will be necessary to make arrangements for extra finance and, if so, your recommendation as to what form it should take.

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000 000 Fixed assets at cost 610 Less depreciation 264 346 Current assets Stocks 210 Debtors 315 Cash at bank and in hand 48 573 Less Current liabilities Creditors 128 445 791 Capital and reserves Issued capital General reserve Profit and loss account. 600 150 41 791