Freewheel is in the process of preparing its master budget for the six months ending December 19X2 The balance sheet for the year ended 30 June 19X2 is estimated to be as foliows Cost Deprec prov NBV Fixed assets 140,000 14.000 126.000 Current assets Stock 25.000 Trade deotors 24.600 Banki 3.000 Not current liabilities 52.600 Creditors Amounts falling due within one year Trade creditors Other creditors 25.000 9.000 34.000 Net current assets Total assets less current liabilities 18.600 144,600 Capital and reserves Share capital Profit and loss account 100.000 44.600 144.600 The budget committee have derived the following trading forecasts for the six months ended 31 December 19X2. Sales in units Wages and Purchases salanes Overheads Purchase EXCI deprec of fixed assets Issue of 20.000 1 shares Dividends May 4.000 12.000 8.000 7.000 June 4.200 13.000 8.000 7.000 4.500 14.000 8.000 7.000 August 4.600 18.000 10.000 7.000 September 4.800 16.000 10.000 7.000 20.000 October 5.000 14.000 10.000 8.000 10.000 November 3.800 12.000 12.000 8.000 30.000 December 3,000 12.000 12.000 8.000 You are given the following information. The selling price in May 19X2 was 6 per unit and this is to be increased to 8 per unit in October 50% of sales are for cash and 50% on credit to be paid two months later. Purchases are to be paid for two months after purchase (c) Wages and salaries are to be paid 75% in the month incurred and 25% in the following month (d) Overheads are to be paid in the month after they are incurred (e) The fixed assets are to be paid for in three equal instalments in the three months following purchase. (f) Dividends are to be paid three months after they are declared and the receipts from the snare ssue are budgeted to be received in the month of issue. ig Fixed assets are depreciated 10% per annum on a straight line basis on those assets owned at 31 December 19X2. (h) Closing stock at the beginning of the period under review was equal to the previous two months purchases. At 31 December 19X2 it was equal to three months purchases. Required al Prepare the following buagets for ins six months ended 31 December 19x2. Cash budget Budgeted orofit and loss account Budgeted balance sheet (b) Comment upon the results, highlighting those areas that you wish to draw to the attention of the budget committee.