BUDGET PREPARATION PROBLEM

For January, February, and March 2024, Frond plans to sell Chemical A in the following schedule: 50 liters in January; 100 liters in February; and 230 liters in March. Consider the following assumptions:

Price per Liter	10,000	Salaries Per Month
Cost per Liter		Salesman	50,000
Labors	40% of Price	Assistant	30,000
Materials	40% of Price	Total Salaries	80,000
Selling Expenses Per Month	50,000
		Miscellaneous (Per Month)	10,000

Other Assumptions:

1. All Sales are on Cash Basis

2. Production Costs are paid in Cash ; Labor is subcontracted

3. All purchases of raw materials are paid in cash

4. All finished goods are assumed to be sold. No ending inventory

5. No taxes considered

REQUIRED: (FINANCIAL PLAN FOR JANUARY, FEBRUARY, AND MARCH)

Prepare the Sales Forecast, Cost (Production) and Expense Budget, and the Income Statement (up to operating income) for the three months in consideration.