Great Used Cars Ltd. is planning its cash needs for the month of January, 2022. The statement of financial position showed the following at December 31, 2021.

	Assets
	Current
	Cash		$40,000
	Accounts receivable		63,000
	Inventory		54,000
			157,000
	PPE, net		1,500,000
			$1,657,000
	Liabilities
	Current
	Operating loan		$200,000
	Accounts payable		41,040
			241,040
	Non-current borrowings		1,000,000
			1,241,040
	Shareholders' Equity
	Share capital		70,000
	Retained earnings		345,960
			415,960
			$1,657,000

Other information:
a.	Cash collection
i.	% cash sales each month	0%
ii.	% credit sales collected in same month	30%
iii.	% credit sales collected in next month	70%
b.	January total sales (10 units)	$150,000
c.	December credit sales	$90,000
d.	Inventory information
i.	February total sales	$160,000
ii.	Gross profit ratio all months	60%
iii.	% purchases paid in cash same month	40%
iv.	% inventory on hand needed for next month	90%
e.	Accounts payable at Dec. 31 all relate to inventory purchases and will be paid in full in January.
f.	Sales commissions (% of sales revenue)	20%
g.	Fixed expenses
i.	Depreciation per month	$5,000
ii.	Salaries per month	$10,000
iii.	Other	$3,000
h.	Interest is paid monthly on opening balances of the operating loan and non-current debt. Interest rate per month:
	1%
i.	Income tax rate	20%
j.	Monthly dividends paid to shareholders	$1,000
k.	Budgeted PPE purchases for January	$15,000
l.	January repayments of principal on non-current debt	$9,000
m.	Desired cash balance at end of January.	$40,000
n.	Maximum operating loan balance at end of January	$600,000
	Any excess cash will be used to pay down the operating loan. A larger operating loan will be borrowed to offset any cash deficiency.

Required:

a. (14 marks) Using a format like the budget worksheet,record the above information.

ASSSETS

=

LIABILITIES

+

S/H EQUITY

Trans.

Cash

+

Acc. Rec.

+

Invent.

+

PPE

=

Op. Loan

+

Acc. Pay.

+

L/T Debt

+

Share Capital

+

Ret. Earn.

Desc.

Cf.

40,000

63,000

54,000

1,500,000

200,000

41,040

1,000,000

70,000

345,960

Totals

b. (9 marks) Make a budgeted statement of financial position at January 31, 2022 and a budgeted income statement, budgeted statement of changes in equity, and budgeted statement of cash flows for the month ended January 31, 2022. Show all calculations. For SCF purposes, assume the operating loan is not part of cash and cash equivalents.