Imogen runs the Manor Park Hotel in Powys, Wales. She purchased the 50 bedroom hotel 10 years ago. She is wondering if the business is trading as well as it could be and would like a report stating how we feel things are. The Trial Balance as at 31 December 2022 is as below:

URGENT !!!!!! PLEASE ANSWER ASAP !!!! ANSWERS MUST BE TYPED !!!!! THANK YOU!!!!!!

\begin{tabular}{|l|c|c|} \hline & & \\ \hline Telephone & 31,780 & \\ \hline Insurance & 11,200 & \\ \hline Sales (accommodation, food \& liquor) & & 955,330 \\ \hline Laundry \& cleaning & 4,800 & \\ \hline Gas \& Electricity & 15,600 & \\ \hline Salaries & 78,460 & \\ \hline Business rates & 21,000 & \\ \hline Wages & 196,000 & \\ \hline Other direct labour expenses & 24,000 & \\ \hline Purchases (food \& liquor) & 74,130 & \\ \hline General expenses & 73,000 & \\ \hline Opening inventory of food \& liquor & 8,000 & \\ \hline Drawings & 180,000 & \\ \hline Freehold Land at cost & 790,000 & \\ \hline Equipment at cost & 224,375 & \\ \hline Furniture and fittings at cost & 197,500 & \\ \hline China, Cutlery etc at cost & 8,160 & \\ \hline Loan from Virgin Money bank (expires 2032) & & 705,600 \\ \hline Accounts receivable & 35,000 & \\ \hline Accounts payable & & 18,700 \\ \hline Owners Capital & & 266,000 \\ \hline Cash at Bank & 97,000 & \\ \hline Depreciation of equipment at 1/1/22 & & 84,875 \\ \hline Depreciation of Furniture and fittings at 1/1/22 & & 39,500 \\ \hline & 2,070,005 & 2,070,005 \\ \hline \end{tabular} NOTES: \& Further information during 2022 the following transactions took place: 1. As at 31/12/2022 the stock of food and liquor was 12,000. 2. A 2,100 bill for Gas and Electricity for the quarter to 31/12/2022 has just been received and is not included yet in the trial balance. 3. The General expenses includes a prepayment of 1,500 for their premises insurance. 4. The Loan with Virgin Money Bank attracts a fixed interest rate of 8% p.a. and has not been included for the year. 5. Telephone payments made contain an advance rental payment in respect of their switchboard of 1,000 and is for the year ending September 2023 . 6. Accrued wages due on 31/12/2022 are 1,300. 7. Business rates paid so far are for only 9 months of the year. The final payment for the remaining 3 months is due but not yet paid. 8. Provide for depreciation of Equipment and Furniture \& fittings at 20% using the reducing balance method. 9. China and glass etc has been revalued at 7,960. If Imogen's business is expected to grow in 2023 she thinks she is going to need additional funds to renovate and upgrade some of her guest rooms and possibly expand into providing Spa facilities. She has applied for an additional bank loan to invest in helping towards the upgrade costs and provide working capital. The amount asked for is 150,000 towards a renovation cost of 250,000. The bank has asked for a cash budget for the next six months ending 30/06/2023. Imogen would expect to pay for the upgrades in even amounts from February onwards for 5 months. Imogen has provided the below additional information: 1. Sales revenue for the year will be evenly received at the same rate as last year for the first 3 months and then as rooms are brought up to the higher standard will increase by 10% and remain at that level for the remaining 3 months of the forecast. 2. The total sales will be for cash and none on credit. 3. Imogen will purchase enough food and liquor to satisfy the demand for each month. 60% of purchases will be paid a month after purchase and the balance will be paid two months after purchase. This will be at the same levels as the previous year. Trade payables brought forward from December will be fully settled in January. 4. The salary and wages for 2023 will rise 10% and employees will be paid on a monthly basis. 5. Imogen will withdraw 10,000 per month to pay for her personal expenses. 6. Insurance for the current year will increase by 5% and will be fully paid in advance in March. Required: i) Prepare a cash budget for Imogen for the six months of January to June 2023. N.B: Show full workings and add notes if necessary so that Bank can understand how the numbers were calculated. (20 marks) \begin{tabular}{|l|c|c|} \hline & & \\ \hline Telephone & 31,780 & \\ \hline Insurance & 11,200 & \\ \hline Sales (accommodation, food \& liquor) & & 955,330 \\ \hline Laundry \& cleaning & 4,800 & \\ \hline Gas \& Electricity & 15,600 & \\ \hline Salaries & 78,460 & \\ \hline Business rates & 21,000 & \\ \hline Wages & 196,000 & \\ \hline Other direct labour expenses & 24,000 & \\ \hline Purchases (food \& liquor) & 74,130 & \\ \hline General expenses & 73,000 & \\ \hline Opening inventory of food \& liquor & 8,000 & \\ \hline Drawings & 180,000 & \\ \hline Freehold Land at cost & 790,000 & \\ \hline Equipment at cost & 224,375 & \\ \hline Furniture and fittings at cost & 197,500 & \\ \hline China, Cutlery etc at cost & 8,160 & \\ \hline Loan from Virgin Money bank (expires 2032) & & 705,600 \\ \hline Accounts receivable & 35,000 & \\ \hline Accounts payable & & 18,700 \\ \hline Owners Capital & & 266,000 \\ \hline Cash at Bank & 97,000 & \\ \hline Depreciation of equipment at 1/1/22 & & 84,875 \\ \hline Depreciation of Furniture and fittings at 1/1/22 & & 39,500 \\ \hline & 2,070,005 & 2,070,005 \\ \hline \end{tabular} NOTES: \& Further information during 2022 the following transactions took place: 1. As at 31/12/2022 the stock of food and liquor was 12,000. 2. A 2,100 bill for Gas and Electricity for the quarter to 31/12/2022 has just been received and is not included yet in the trial balance. 3. The General expenses includes a prepayment of 1,500 for their premises insurance. 4. The Loan with Virgin Money Bank attracts a fixed interest rate of 8% p.a. and has not been included for the year. 5. Telephone payments made contain an advance rental payment in respect of their switchboard of 1,000 and is for the year ending September 2023 . 6. Accrued wages due on 31/12/2022 are 1,300. 7. Business rates paid so far are for only 9 months of the year. The final payment for the remaining 3 months is due but not yet paid. 8. Provide for depreciation of Equipment and Furniture \& fittings at 20% using the reducing balance method. 9. China and glass etc has been revalued at 7,960. If Imogen's business is expected to grow in 2023 she thinks she is going to need additional funds to renovate and upgrade some of her guest rooms and possibly expand into providing Spa facilities. She has applied for an additional bank loan to invest in helping towards the upgrade costs and provide working capital. The amount asked for is 150,000 towards a renovation cost of 250,000. The bank has asked for a cash budget for the next six months ending 30/06/2023. Imogen would expect to pay for the upgrades in even amounts from February onwards for 5 months. Imogen has provided the below additional information: 1. Sales revenue for the year will be evenly received at the same rate as last year for the first 3 months and then as rooms are brought up to the higher standard will increase by 10% and remain at that level for the remaining 3 months of the forecast. 2. The total sales will be for cash and none on credit. 3. Imogen will purchase enough food and liquor to satisfy the demand for each month. 60% of purchases will be paid a month after purchase and the balance will be paid two months after purchase. This will be at the same levels as the previous year. Trade payables brought forward from December will be fully settled in January. 4. The salary and wages for 2023 will rise 10% and employees will be paid on a monthly basis. 5. Imogen will withdraw 10,000 per month to pay for her personal expenses. 6. Insurance for the current year will increase by 5% and will be fully paid in advance in March. Required: i) Prepare a cash budget for Imogen for the six months of January to June 2023. N.B: Show full workings and add notes if necessary so that Bank can understand how the numbers were calculated. (20 marks)