Freewheel LTD 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 follows: Cost Deprec prov NBV

Fixed assets 140.000 14.000 126.000

Current assets

Stock 25.000

Trade debtors 24.600

Bank 3.000

Net current liabilities 52.600

Creditors Amounts falling due within one year

Trade creditors 25.000

Other creditors 9.000

34.000

Net current assets 18.600

Total assets less current liabilities 144.600

Capital and reserves 100.000

Share capital 44.600

Profit and loss account 144.600

The budget committee have derived the following trading forecasts for the six months ended 31 December 19X2.

Sales Purchases Wages Overheads Purchase Issue of Dividends

in units and salaries excl.deprec of fixed assets 20.000

May 4.000 12.000 8.000 7.000

June 4.200 13.000 8.000 7.000

July 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

Prepare the following budgets for the six months ended 31 December 19X2

1) Cash budget, 2) budgeted profit and loss account, 3) Budgeted balance sheet.