Blooms Enterprise is a real company that when the for match forthcoming period Jawy to March 2021 is to be prepared Expedition for the forthcoming period include the following Expected Statement of Financial Position 31 December 2000 - ASSETS No-current Amets Property Plant and Equipment (NV) 1,344,500 Current Assets Inventory Accounts Receivable Marketable securities Cash 346,500 126,000 30.000 350.000 855.50 2.200.000 EQUITIES AND LIABILIATIES Capital Share capital Accumulated profits 1,000,000 216.200 1,216,200 Current Liabilities Accounts Payable 10% Bond Payable 396,900 586,900 983.800 2.200.000 b. Sales data-the company's sales for December 2020 are expected to be $900,000 and it is expected that it will increase by 10% each month over the previous month for the quarter 3 ending March 31, 2021. Sules are expected to remain content March, 2001 level for the next three months Collections - credit sales we typically one of total sales Outstanding out from me are normally collected as follows: 80during the month of sale 20% during the month after sale d. Cost of goods sold - this is normally 70% of total wale To have adequate socks of inventory on hand, the company attempts to have inventory at the end of each month equal to half (snc) of the next month's projected cost of yoods sold Inventory in purchased on account and usually settled as follows 40% during the month of purchase 60% during the month after purchase 35.000 Other monthly expenses 5 Le anch Expense type Salaries Advertising and promotion Depreciation Sales commission 100.000 25.000 60,000 2% of total sales Equipment is to be purchased on January 1, 2021 for cash in the amount of $700,000.- & The directors have indicated an intention to declare and pay dividends of S120,000 on the last day of each quarter h. The executives believe that the company should maintain a minimum cash balance of $60,000. If the cash balance in any month is less than $60,000, then the company can borrow to cover the shortfall. Amounts borrowed must be in multiples of $1.000 (for example, $50,000 or $51,000 but not $1,500 5150) The interest rate is 10% per annum Repayment of principal and interest must be made on the last day of each quan Tax payable represents 2016 of Profit before Tex and will be paid April 30, 2011 after the end of the first quarter) Required: Prepare the following budgets for Blooms Enterprise by month and the quarter in total for the period ending March 31, 2021 end let me willing and (a) Schedule showing breakdown of sales between cash and credit (int: show December 2030 and April 2021 as well). (12 marks) (b) Schedule of cash collected from customers 012 marks) (e) Purchases budget (Hint: show April 2021 as well) (12 marks) (d) Schedule of cash disbursement to suppliers of products for resale (8 marks) (e) Cash budget for the period. - (28 marks) EX (Total = 72 marks) THE END OF PROJECT
