Broke Mr. Fauch is singing about going into business on January 1. He plans to sell a single model of a small home freezer. Each freezer will sell for $ 300. The customer will have the choice of paying cash or buying on credit. If the buyer buys on credit, he will have to pay $ 30 at the time of purchase and $ 30/month thereafter until full payment of $ 300. Mr. Fauch has negotiated an agreement with a manufacturer: he will have 20% of the purchases planned for the month of the purchase on the 1st of the month and the balance of 80% the following month. The purchase price is $ 175 per unit. Mr. Fauch will invest 10,000 on January 1. He negotiated an agreement with a bank. This bank agrees to grant Mr. Fauch's business loans guaranteed by accounts receivable. Loans and repayments to the bank will be made in installments of $ 1,000 on the last day of the month, as will the payment of interest. Mr. Fauch must maintain a positive balance in the bank, that is, a balance greater than zero in other words, the balance at the end of the month cannot be negative). The monthly interest payment (at the rate of 1% per month) is calculated on the cumulative balance of bank loans at the end of the month and should be considered in the calculation of bank loans. Sellers will earn a commission of $ 30 per unit. Delivery charges and other variable charges will also be $ 30 per unit sold. Fixed charges other than interest require expenses of $ 1,700 per month. All these expenses will be paid in the same month in which they are encouraged. Mr. Fauche wants to maintain a stock of 200 units at the end of each month. There is no inventory at the beginning of January. It provides for the following sales (in units). January 100 February 160 March 180 April 220 May 380 June 360 Mr. Fauch believes that only 25% of the units sold will be paid for in cash. WORK TO DO: 1. Prepare a cash budget for the first 6 months of the fiscal year. What is the amount of cash on June 30? (follow the format below - see next page) 2. Calculate the budgeted or forecast net income for the first semester, ie for the 6-month period ending on June 30. It is not necessary to calculate the net result per month, but one must calculate for the whole semester. 3. Prepare the provisional balance sheet at June 30. Broke Mr. Fauch is singing about going into business on January 1. He plans to sell a single model of a small home freezer. Each freezer will sell for $ 300. The customer will have the choice of paying cash or buying on credit. If the buyer buys on credit, he will have to pay $ 30 at the time of purchase and $ 30/month thereafter until full payment of $ 300. Mr. Fauch has negotiated an agreement with a manufacturer: he will have 20% of the purchases planned for the month of the purchase on the 1st of the month and the balance of 80% the following month. The purchase price is $ 175 per unit. Mr. Fauch will invest 10,000 on January 1. He negotiated an agreement with a bank. This bank agrees to grant Mr. Fauch's business loans guaranteed by accounts receivable. Loans and repayments to the bank will be made in installments of $ 1,000 on the last day of the month, as will the payment of interest. Mr. Fauch must maintain a positive balance in the bank, that is, a balance greater than zero in other words, the balance at the end of the month cannot be negative). The monthly interest payment (at the rate of 1% per month) is calculated on the cumulative balance of bank loans at the end of the month and should be considered in the calculation of bank loans. Sellers will earn a commission of $ 30 per unit. Delivery charges and other variable charges will also be $ 30 per unit sold. Fixed charges other than interest require expenses of $ 1,700 per month. All these expenses will be paid in the same month in which they are encouraged. Mr. Fauche wants to maintain a stock of 200 units at the end of each month. There is no inventory at the beginning of January. It provides for the following sales (in units). January 100 February 160 March 180 April 220 May 380 June 360 Mr. Fauch believes that only 25% of the units sold will be paid for in cash. WORK TO DO: 1. Prepare a cash budget for the first 6 months of the fiscal year. What is the amount of cash on June 30? (follow the format below - see next page) 2. Calculate the budgeted or forecast net income for the first semester, ie for the 6-month period ending on June 30. It is not necessary to calculate the net result per month, but one must calculate for the whole semester. 3. Prepare the provisional balance sheet at June 30