$1.$ Sales and cost of sales are expected to increase by $15\%$ in each of the next two quarters.

$2)80\%$ of sales are collected in the quarter of sale and $20\%$ are collected in the quarter following

sale.

$3)$ Food purchases in the fourth quarter of $2023$ are $ $265,000.$

$4)$ Food inventory at the end of $2023$ is $$55,000.$ For $2024,$ the company plans to hold ending

inventory equal to $30\%$ of the next quarter$$s cost of sales.

$5.$ Selling, general, and administrative expenses are expected to increase by $ $15,000$ due to

increases in advertising and salaries. All other expenses in this category are expected to remain

constant.

$6)75\%$ of inventory purchases are paid in the quarter of purchase and $25\%$ are paid in the

following quarter. All other expenses, including taxes, are paid in the quarter incurred.

$7)$ Selling and administrative expense includes $$5,000$ of depreciation related to fixtures and

equipment.

$8)$ The tax rate is expected to remain at $40\%$

$9)$ The cash balance at the end of $2023$ is $ $38,900.$

Required:

a$)$ Prepare a budgeted income statement for the first quarter of $2024.$

b$)$ Prepare a purchases budget for the first quarter of $2024.$

c$)$ Prepare a cash budget for the first quarter of $2024.$