Bellerose Used Cars Ltd. is planning its cash needs for the month of January, 2023. The statement of financial position showed the following at December 31, 2022. Other information: Assets Current Cash $10,000 Accounts receivable 720,000 Inventory 288,000 1,018,000 PPE, net 800,000 $1,818,000 Liabilities 1. January total sales (100 units) $800,000 2. Cash collection a. % cash sales each month 0% b. % credit sales collected in same month 20% C. % credit sales collected in next month 80% 3. December credit sales $900,000 4. Inventory information a. February total sales $700,000 b. Gross profit ratio all months 40% C. % purchases paid in cash same month 20% d. % inventory on hand needed for next month 60% 5. Accounts payable at Dec. 31 all relate to inventory purchases and will be paid in full in January. Current 6. Operating loan $100,000 Sales commissions (% of sales revenue) 5% 7. Accounts payable 403,200 Fixed expenses a. Depreciation per month $10,000 503,200 b. Salaries per month $100,000 Non-current borrowings 600,000 C. Other $150,000 1,103,200 8. Shareholders' Equity Interest is paid monthly on opening balances of the operating loan and non-current debt. Interest rate per month: 1% Share capital 5,000 9. Income tax rate 20% Retained earnings 709,800 714,800 $1,818,000 10. 11. Monthly repayments of principal on non-current debt Desired cash balance at end of January. $10,000 12. Maximum operating loan balance at end of January $40,000 $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 2022 income taxes have been paid prior to January 1, 2023. b. (6 marks) Prepare a budgeted statement of financial position at January 31, 2023 and a budgeted income statement, budgeted statement of changes in equity, and budgeted statement of cash flows for the month ended January 31, 2023. Show all calculations. For SCF purposes, assume the operating loan is not part of cash and cash equivalents. ASSSETS LIABILITIES S/H EQUITY Op. Trans. Cash + Acc. Rec. + Invent. + PPE Loan Acc. Pay. L/T Debt Share Capital + Ret. Earn. Desc. Cf. 10,000 720,000 288,000 800,000 100,000 403,200 600,000 5,000 709,800 Totals