Exam Q 160% t Meekh.. Tyrion Lid -Forecast for the ix months 1" December 1020 to 31 May 20:1 B I Xz x2 S Income 1", December 2020, common (ordinary ) share capita: ives ed in the newou ines; $50,0ou S . E . E . 1. Times . . . January 2021, addi tonal common (ordinary, share capi.a invested in the new business. $10.000 Forecasted sales, Cash sales each month: For 6-month end Dec $9.500 Mar $18,200 Jan $16,800 Apr $19,500 Total sales Feb $17,000 May $19,800 Less coast of goods sold Credit Sales ( all on 2 mouths credit): Dec $3,200, can $4,100, Feb $.4,800, Mar $5,300, Apr $6,200, May $7,500 (81,400-9000) Expenditure Forecasted purchases Gross profit 284 Credit purchases (all purchases are on 1 month's credit): Dec $9,800 Mar $14,000 Jan $10,100 Apr $16,800 Less expense Feb $12.500 May $18,200 Wages and salaries, $2,800 each month (Dec to May) payable in the month they are due Insurance 92 Advertising, $850 each month (Dec to May) payable 1 month after it is due . . Insurance, $920 for the year, payable in December 2020 Advertise 5100 kent (for par.ing spaces)): $180, (for the 3 months, Dec to Feb) will be payable in January 2021 $180, (for the 3 months, Marto May) will be payable in May 2021 Closing inventory at 31-May 2021 is forecasted to be $9,000 Salaries 1680 . . . General expenses $1,020 each month (Dec to May) payable 1 month after it is due Machinery costing $49,000, and a motor vehicle costing $5.200 will be bought (and paid for) Ren 540 in December 2020 . Maintenance formachinery, $1.200 each month (Dec to May) payable in the month it is due Other expenses 6120 Depreciation for the 6months, December 2020 to May 2021 is forecasted to be Machinery $4,900 Motorvehicle $1,040 Machines 54200 Accounting expenses, $1,100 each month (Dec to May) payable in the month it is due Maintenance 7200 Notes : *The company will maintain a minimum cash balance of $1,000 at the end of each month . It can Depr 5940 borrowmoney on notes payable of $500 each, at an annual interest rate of 12%. Management borrows no more than the amountneeded to maintain the $1,000 minimum Acc ex 6600 *Borrowing, repayment of principal and payments of interest all take place at the end of the month *Monthly interest on theunpaid principal will start from January 2021 Total expenses 103,420 *The company has agreed to pay back the short term loan in monthly installments of $500, also commencing from January 2021 O E . III REQUIRED 100 % Prepare a forecasted Cash Budget, a forecasted Income Statement, and a forecasted Balance Sheet for Netprofit before the first 6 months oftrading Less Interest 0 . ASUS Vivobook 14 12 NG Pr Sc An 5 6 8 U kepace R T Y - U 1 O P G G H J K X W O Z Mn 4 PgUp Alt Ctri 4 Home PgOn