From the following information relating to Black Ltd you are required to prepare (a) Profit & loss statement for the year ended 30 June 2020, and (b) Balance sheet as at 30 June 2020 $ Sales 190 000 Drawings 13 000 Inventory 1 July 2019 18 000 Capital 151 500 Purchases 118 000 Motor vehicles 24 000 Land & buildings 130 000 Advertising 1 500 Office salaries 23 000 Insurance 2 000 Telephone 1 100 Light & power 1 400 Rates & taxes 1 200 Stationery 1 300 Rental income 12 000 Accounts receivable 16 000 Allowance for doubtful debts 1 000 Accounts payable 16 000 GST payable 5 000 Cash at bank 11 000 Interest received 1 000 Investments 12 000 Computer equipment 3 000 Inventory 30 June 2020 19 000 PRACTICAL TASK 4 Black Ltd produces a product for travelling. You have been asked to prepare the monthly budget for the quarter ending 30 June of the current year. The marketing manager has forecasted the sales for the three months as follows: April 1 000 units May 1 200 units June 1 000 units The selling price per units is $300 The business plans to have 40% of the next month's sales in closing stock at the end of the previous month. Opening April stocks will be 400 units. Closing stocks at the end of June are expected to be 500 units All sales are made on credit. The money is expected to be received as follows: 10% in the month of sale 75% in the month following sale 15% in the second month following sale Amounts to be collected in April and May in respect of previous months sales are $200,000 and $80,000 respectively Each unit produced requires 8 metres of materials at $10 per metre Direct labour costs $36 per hour with 4 hours needed for each unit produced Other variable costs are expected to be $20 per unit Fixed manufacturing costs amount to $8 000 per month, but are charged into production at $20 per unit Fixed selling and administration costs are $20,000 per month All expenses, apart from labour, are paid for at the end of the month after the month of purchase. Amounts paid in April in respect of costs (excluding GST) from the previous month are: Materials $20 000 Other variable costs $10 000 Fixed manufacturing costs $ 8 000 Fixed selling & administration costs $20 000 The balance of GST collected and paid for in a particular month is forwarded to, or refunded by, the ATO in the following month. The balance of GST owing from March is $15 000 The opening April cash balance is expected to be $10 000 You are required to prepare the following budgets for the three months of April, May and June: (a) Sales (in units and $) (b) Production (c) Materials (in units and $) (d) Direct Labour (e) Other variable costs (f) Cost of Goods sold (g) Schedule of Collection Budget (h) Cash Budget (i) Profit and Loss Statement for the quarter ended 30 June of the current year PRACTICAL TASK 5 (PC: 4.1, 4.2) The following information concerns the outstanding sales of Black Ltd for the months January to May of the current year. From the information below you are required to prepare an aged debtors analysis and make any necessary comments. Customer Total May April March Feb Jan A Pty Ltd 4,200 2,600 1 600 B Ltd 4,000 4,000 C & Co 400 100 100 200 D Ltd 3,000 2,000 1 000 During the month of June the following transactions took place: A Pty Ltd paid $2,000 off their May outstanding sales and purchased another $1 400 worth of goods on credit B Ltd paid their May account in full and purchased another $3,400 worth of goods on credit D Ltd paid their April balance and purchased another $800 worth of goods on credit