2. Nupes's balance sheet for 30 November 2020 follows. Use it and the following information to prepare a cash budget for Nupes for December 2020: (5 marks) 75% of Nupes's sales are on credit sales (sales on account). Out of these credit sales, 50% are collected in the month of the sale, 49% are collected the following month and 1% are never collected and written off as bad debts. All purchases of materials are on account. Nupes pays for 75% of purchases in the month of purchase and 25% in the following month. All other costs are paid by Nupes in the month incurred. Nupes is making monthly interest payments of 1% (12% per year) on a $20,000 long-term loan. Nupes plans to pay the $500 of taxes owed as of 30 November 2020 in December 2020. Income tax expense for December is zero. 35% of marketing and general administration costs are depreciation, and 45% of processing and set-up costs are also depreciation. . Nupes Balance Sheet as of 30 November 2020 Assets Cash $2,000 Account receivable $4,800 Less: Allowance for bad debts 96 4,704 Inventories: Direct materials 172 Finished goods 990 Fixed assets $190,000 Less: Accumulated depreciation 55,759 134,241 Total assets $142,107 Liabilities and equity Account payable $696 Taxes payable 500 Interest payable 200 Long-term debt 20,000 Ordinary shares 10,000 Retained earnings 110,711 Total liabilities and equity $142,107 3. Prepare a budgeted income statement for December 2020 and a budgeted balance sheet for Nupes as of 31 December 2020. (5 marks) 2. Nupes's balance sheet for 30 November 2020 follows. Use it and the following information to prepare a cash budget for Nupes for December 2020: (5 marks) 75% of Nupes's sales are on credit sales (sales on account). Out of these credit sales, 50% are collected in the month of the sale, 49% are collected the following month and 1% are never collected and written off as bad debts. All purchases of materials are on account. Nupes pays for 75% of purchases in the month of purchase and 25% in the following month. All other costs are paid by Nupes in the month incurred. Nupes is making monthly interest payments of 1% (12% per year) on a $20,000 long-term loan. Nupes plans to pay the $500 of taxes owed as of 30 November 2020 in December 2020. Income tax expense for December is zero. 35% of marketing and general administration costs are depreciation, and 45% of processing and set-up costs are also depreciation. . Nupes Balance Sheet as of 30 November 2020 Assets Cash $2,000 Account receivable $4,800 Less: Allowance for bad debts 96 4,704 Inventories: Direct materials 172 Finished goods 990 Fixed assets $190,000 Less: Accumulated depreciation 55,759 134,241 Total assets $142,107 Liabilities and equity Account payable $696 Taxes payable 500 Interest payable 200 Long-term debt 20,000 Ordinary shares 10,000 Retained earnings 110,711 Total liabilities and equity $142,107 3. Prepare a budgeted income statement for December 2020 and a budgeted balance sheet for Nupes as of 31 December 2020