Change Purse Inc. is a small business that is planned to be located in a small Nova Scotia town. The town was incorporated in 1889 and, like many communities in Nova Scotia, it prides itself on being able to offer a unique quality of life to its citizens. Much of its history recognizes the importance of individuals, family, and community. The townis council has emphasized attracting small besinesses to the area based on its quality of life. Bethany \( \mathrm{Ng} \), the owner of Change Purse inc, believes that there is a market for handbags in the town and surrounding area. Bethany just received her degree in design from a provincial college of art and design and thought about starting the business during the last year of her academic program. Bethany believes that her unique approach to design and her use of "green" materials in the production of the handbags will attract potential customers. Her assessment of the market demand included a phone survey of a random sampling of town residents, an analysis of population data retrieved from the Statistics Canada website. and an assessment of the availability of competitive products in the town and surrounding anta. Following her market assessment, Bethany incorporated a business with the intention of opening a small location on July 1, 20X3, on the town's main street, where she would manufacture and sell a variety of bags, from diaper bags to evening bags. All the materials will be sourced from local suppliers and the manufacturing will be done by Bethany. Although handbags represent a difficult market to conquer, Bethany expects sales to be reasonably strong. She spent the last few months working on a business plan and she has considered various aspects of her business model. Handbag sales are anticipated to come from the Internet (15\%), mail orders over the phone (15\%), and walk-ins to the store (70\%). All on-line and mail-order sales are to be paid by credit card and the in-store sales are anticipated to be paid by cash (10\%), debit card (30\%), and credit card (60\%5). Beth. any has made an arrangement with a local financial institution sach that the debit procesing will be done the same day but the credit card processing will be done on the last day of the month for the eatire month's credit card sales. The cost of credit card processing is a fee of \( 5 \% \) of the total amount processed, while the debit card processing is covered by her monthly business banking fees. The manufacturing process takes approximately two months. To take advantage of fabric and material purchase discocnts. Bethany plans to buy the material for the year in January and Fibruary (50\% in each month) and she will do all the manufacturing herself. Because Bethany will be buying material in July for 20X3, she will need to purchase and pay for all the material at once to get the discount. The cost of the materials will vary depending on the type of bag, with coits approximating \( \$ 20, \$ 10, \$ 10 \), and \( \$ 50 \) per bag for diaper, ahopping school, and evening bags, respectively: the cost includes the discount for buying in January and February. Bethany has already contributed \( \$ 1.000 \) in cash when incorporating the business therefore, she expects to have access to the \( \$ 1,000 \) in cash that she contributed and a \( \$ 10,000 \) line of credat ( \( 5 \% \) annual inter:eit cost) that she has already secured from her financial intitution and from which she can borrow in \( \$ 1,000 \) increments. The anticipated ales price, volume, and pattern are presented in Edhibit 1 and the expected monthly expenies are presented in Exhibit 2 , monthly expenies are paid in cash in the month incurred. Required Bethany Ng has cocse to you, a professional accountant, for advice concerning her propoied buniness plan. In partlcular. Bethany wants help in bodgeting her monthly firancial resources and projecting her potential monthly incotne. Write a report to Bethany.