Browser Books sells books in two stores, each located near a major college in Toronto. Each store is open six days a week and 9 hours a day except in January, May, and September when it is open 12 hours per day. These months are the start of the academic term.

It is now the end of September, 2013, and the busy month is over year. You are doing an initial budget for next year. You have the following other information.

* There are precisely 39 weeks included in the 9 months of operation to the end of September, 2013.

* General books sell very steadily during the year at about 200 books per store per week. On average, general books sell for $50.00 each and cost Browser $25.00. Next year, sales prices are expected to rise by about $3.00 a book while book costs are expected to rise by $1.00 a book.

* Textbooks are seasonal with three key periods that match college terms: September, January and May. September is the big month with average sales of 300 textbooks per store per week. January is the next biggest month with sales of 180 textbooks per store per week while May has average weekly sales of 130 textbooks at each store. The rest of the year, textbooks sell at a rate of around 40 each week per store.

* Unfortunately textbook sales have been falling over time. Browser expects sales to fall in 2014 by 2 textbooks each week at each store.

* On average, textbooks sell for $120.00 each and cost Browser $50.00. Concern about falling sales means textbook prices are not expected to rise in 2014 but textbooks will cost Browser

$5.00 more each.

* Store wages are $15.00 per hour. There are three staff on duty at all times in each store except in January and May when there are four staff working at each store and September when there are five staff at each store. Wages are expected to go up by $1.00 per hour in 2014.

* In addition, each store has a manger who is paid $5,000 per month in 2013 and who will get a 5% raise in 2014.

* Rent is $5,500 per month per location. The leases are all long term leases and no increase in expense is expected next year.

* Due to the different colleges served. advertising is per store in the weekly college newspaper. Advertising costs $1,000 per week per store.Advertising costs will go up by 5% in 2014.

* Amortization costs are are $1,500 per month per store. No capital expenditures are planned for the next two years.

Required:

Using budget techniques of simple projection and specific projection as appropriate, complete the attached budget worksheet including (one mark will awarded for each cell + 2 marks for your rough work)

a. a projection of results for the twelve months ending December 31, 2013

b. a one month budget for January, 2014

c. and a budget for the twelve months ending December 31, 2014