The balance sheet of Gregg Ltd at 30 June 19 X6 was expected to be as follows:

All sales will be on credit, and debtors will pay their accounts two months after they have bought the goods.
(iii) Production will be even at 90 units per month.
(iv) Purchases of direct materials - all on credit - will be:

Creditors for direct materials will be paid three months after purchase.
(v) Direct labour is paid in the same month as production occurs.
(vi) Variable overhead is paid in the month following that in which the units are produced.
(vii) Fixed overhead of \(£ 90\) per month is paid each month and is never in arrears.
(viii) A machine costing \(£ 500\) will be bought and paid for in July. A motor vehicle costing \(£ 2,000\) will be bought and paid for in September.
(ix) A debenture of \(£ 5,000\) will be issued and the cash received in November. Interest will not start to run until \(19 \times 7\).
(x) Provide for depreciation for the six months: Motor vehicles \(£ 600\), Office fixtures \(£ 30\), Machinery \(£ 700\).
You are required to draw up as a minimum:

(a) Cash budget, showing figures each month.

(b) Debtors' budget, showing figures each month.

(c) Creditors' budget, showing figures each month.

(d) Raw materials budget, showing figures each month.

(e) Forecast operating statement for the six months.

(f) Forecast balance sheet as at 31 December 19 X6.
In addition you may draw up any further budgets you may wish to show the workings behind the above budgets.

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Fixed assets Land and buildings Plant and machinery Motor vehicles Office fixtures Current assets Stock-in-trade: Finished goods Balance Sheet 30 June 19X6 () Raw materials Debtors (19X6 May 990+ June 900) Cash and bank balances Depreciation Cost to date Net 40,000 40,000 10,000 6,000 4,000 6,000 2,800 3,200 500 220 280 56,500 9,020 47,480 1,800 300 1,890 7,100 11,090 58,570