ASSSETS S LIABILITIES S/H EQUITY Trans. Cash Acc. + + Invent. Op. Acc. + Rec. + L/T Debt Share Ret. + + Loan Pay. Capital Desc. Earn. Cf. 40,000 63,000 54,000 200,000 41,040 1,000,000 70,000 345,960 TotalsOther information: 1. January total sales (100 units) $800,000 2. Cash collection a. 96 cash sales each month 0% b. 96 credit sales collected in same month 2096 c. 96 credit sales collected in next month 8096 3. December credit sales $900,000 4. Inventory information a. February total sales $700,000 1']. Gross profit ratio all months 40% c. 96 purchases paid in cash same month 2096 d. 96 inventory on hand needed for next month 6096 5. Accounts payable at Dec. 31 all relate to inventory purchases and will be paid in full in January. 6. Sales commissions (96 of sales revenue] 5% 7. Fixed expenses a. Depreciation per month 510,000 b. Salaries per month $100,000 c. Other $150,000 3- Interest is paid monthly on opening balances of the operating loan and non-current debt. Interest rate per month: 1% 9. Income tax rate 2096 10. Monthly repayments of principal on non-current debt 510,000 11. Desired cash balance at end of January. $40,000 12. Maximum operating loan balance at end ofJanuary $600,000 Any excess cash will be used to pay down the operating loan. A larger operating loan will be borrowed to offset any cash deficiency. Required: a. (12 marks] Using the budget worksheet on the following page, record the above information. Assume that all 2021 income taxes have been paid prior to January 1, 2022. b. [6 marks) Prepare a budgeted statement of financial position at January 31, 2022 and a budgeted income statement, budgeted statement of changes in equity, and budgeted statement of cash flows for the month ended January 31, 2022. Show all calculations. For SCF purposes, assume the operating loan is not part of cash and cash equivalents