A manufacturing company, XYZ Ltd, was founded on January 1, 20XX, and is involved in producing electronic gadgets. The company's owners invested $2 million as share capital. On February 1, 20XX, the company secured a long-term loan of $1.5 million at 10% interest per annum, payable quarterly. The company purchased machinery for $500,000, computers for $300,000, and office furniture for $100,000 on January 31, 20XX, for cash. In addition, a shipment of raw materials worth $400,000 was received on January 31, 20XX, on credit terms. The cost breakdown for their main product, the 'Smart Gadget SG-200,' is as follows: Unit Cost Per batch Materials: $ $ Microchips: 20 units x $15 300 Circuit boards: 10 units x $10 100 Plastic casing: 50 Metal components: 150 Total Material Cost: 600 Labor: Assembly: 2 hours x $25 per hour 50 Quality Control: 1 hour x $30 per hour 30 Packaging: 0.5 hours x $20 per hour 10 Total Labor Cost: 90 Variable Overhead: 30 Fixed Overhead Recovery Rate at $40 per hour 2 hours of production time 80 Total Estimated Cost: $800 Selling Price: $1,200

Production is planned at 2,000 Smart Gadgets per month, but due to seasonal factors, only 1,000 units will be produced in July and August. Production will increase to 2,500 units in November and December to meet higher demand during the holiday season. The company expects to sell its entire production each month and ships products on the day of completion.

The company offers two months of credit to customers, and it anticipates bad debts to be 2% of sales. It receives one month of credit from material suppliers. The company pays rent quarterly in advance, utilities every month, an annual insurance premium of $10,000 in May, and selling expenses of $5,000 each in March and September.

Prepare: (a) a balance sheet as of January 31, 20XX; (b) a monthly cash budget for 20XX; (c) a profit and loss account for 20XX (considering a corporate tax rate of 30%); (d) a balance sheet as of December 31, 20XX; (e) calculate the contribution margin, break-even point, and margin of safety for the Smart Gadget SG-200."