Golden Horn is a sole traderoperating as a wholesaler in paint industry.

Balance Sheet as at 31 March

Current Assets

Accounts Receivable

137808

Cash at Bank

40000

Inventory

18200

Non-Current Assets

Plant and Equipment (at cost)

140000

Accumulated Depreciation on Plant and Equipment

52000

Office Equipment (at cost)

65000

Accumulated Depreciation on Office Equipment

20000

Total Assets

329008

Current Liabilities

Accounts Payable

45300

GST payable

8000

Non-Current Liabilities

5 % Loan (due in 2 years)

110000

Total Liabilities

163300

Net Assets

165708

Proprietors Equity

Capital

115200

Accumulated Profits

50508

165708

Additional Information

Sales (in $) (excluding GST)

Actual

January 75000

February 78000

March 85200

Forecast

April 86100

May 90500

June 87500

July 85000

All sales on credit.

50% pay within 30 days of invoice date.

30% pay between 30 and 60 days of invoice date.

20% pay between 60 and 90 days of invoice date.

90% of sales are on credit; the remainder are cash. GST applies to all sales.

The markup on cost for paint average 70%

Closing inventory for each month should represent 30% of the next months sales in units (cost of sales). All purchases for a mont are paid for in the month following the purchase.GST applies to all purchases.

Golden charges a monthly rent of $ 500 plus GST which will rise to $530 plus GST in June. The tenant meets all his own power and utility costs; the rental amount includes a portion of the rent and other costs associated.

Administration costs (excluding depreciation and rent) represent 20% of each month's

purchases and are paid in the month in which they are incurred. GST applies.

Depreciation is charged to the accounts at the rate of:

Plant and equipment (marketing ) 15% per year on cost

Office equipment 12% per year on cost

Marketing and Distributing costs represent 10% of each month's sales and are paid in the month in which they incurred. GST applies.

Loan interest is paid at the end of each month at the rate of 5,4% per year. (The mortage is an

interest only loan with the principal due next years)

Property rental (commercial) of $4000 plus GST is paid at the beginning of each month.

Required:

1. Prepare month-by-month budgets for the three months ending 30 June 2016:

(a) Sales budget.

(b) Purchases budget.

(c) Cost of Goods Sold budget.

(d) Expenses budget.

(e) Cash Receipts Budget.

(f) Cash Payments Budget.

(g) Cash Budget.

(H)GST payable ledger account.

2. Prepare the following reports:

(a) Income Statement for the quarter.

(b) Balance Sheet as at 30 June.