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.

	Assets
	Current
	Cash		$10,000
	Accounts receivable		720,000
	Inventory		288,000
			1,018,000
	PPE, net		800,000
			$1,818,000
	Liabilities
	Current
	Operating loan		$100,000
	Accounts payable		403,200
			503,200
	Non-current borrowings		600,000
			1,103,200
	Shareholders Equity
	Share capital		5,000
	Retained earnings		709,800
			714,800
			$1,818,000

Other information:
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.
6.	Sales commissions (% of sales revenue)	5%
7.	Fixed expenses
a.	Depreciation per month	$10,000
b.	Salaries per month	$100,000
c.	Other	$150,000
8.	Interest is paid monthly on opening balances of the operating loan and non-current debt. Interest rate per month:
		1%
9.	Income tax rate	20%
10.	Monthly repayments of principal on non-current debt	$10,000
11.	Desired cash balance at end of January.	$40,000
12.	Maximum operating loan balance at end of January	$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

Trans.

Cash

+

Acc. Rec.

+

Invent.

+

PPE

=

Op. 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

Bellerose used Cars ttd. is planning its cash needs for the month of lanuary, 2023. The itatement of financial position shoued the following at December 31, 2022.1 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 lanuary 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 equily, and budgeted statement of cash flows for the month ended danuary 31 ,2023. Show all calculations. For SCF purposes, assume the operating loan is not part of cash and cash equivalents