Jabez TradingAppliance Company Ltd Jabez Appliance Trading Company Ltd is a retail company that sells Appliances. The budget for the forthcoming period January 1 to March 31, 2023 is to be prepared. Expectations for the forthcoming period include the following: a. Expected Statement of Financial Position as at 31 December 2022 ASSETS Non-current Assets Property Plant and Equipment (NBV) S 1,344,50 0 Current Assets Inventory 346,500 Accounts Receivable 126,000 Marketable securities 30,000 Cash 353,000 855,500 2,200,00 EQUITIES AND LIABILIATIES Capital Share capital Accumulated profits Current Liabilities Accounts Payable 396,900 10% Bond Payable 1,000,00 0 216.200 1,216,20 0 586,900 983,800 2,200,00 0 b. Sales data-the company's sales for December 2022 are expected to be $1,000,000 and it is expected that it will increase by 10% each month over the previous month for the quarter ending March 31, 2023. Sales are expected to remain constant at March 31, 2023 level for the next three months. c. Collections-credit sales are typically 70% of total sales. Outstanding amounts from sales are normally collected as follows: i. 80% during the month of sale ii. 20% during the month after sale d. Cost of goods sold - this is normally 70% of total sales. To have adequate stocks of inventory on hand, the company attempts to have inventory at the end of each month equal to half (50%) of the next month's projected cost of goods sold. Inventory is purchased on account and usually settled as follows: i. 40% during the month of purchase ii. 60% during the month after purchase e. Other monthly expenses: Expense type Salaries Advertising and promotion Depreciation Sales commission $ 100,000 25,000 60,000 2% of total sales f. Equipment is to be purchased on January 1, 2023 for cash in the amount of $700,000. 3 g. The directors have indicated an intention to declare and pay dividends of $120,000 on the last day of each quarter. h. The executives believe that the company should maintain a minimum cash balance of $100,000. If the cash balance in any month is less than $100,000, then the company can borrow to cover the shortfall. Amounts borrowed must be in multiples of $1,000 (for example, $50,000 or $51,000 but not $51,500 or 51,566). The interest rate is 10% per annum. Repayment of principal and interest must be made on the last day of each quarter. i. Tax payable represents 20% of Profit before Tax and will be paid April 30, 2023 (after the end of the first quarter). Required: Prepare the following budgets for Jabez Enterprise by month and the quarter in total for the period ending March 31, 2023: (a) Schedule showing breakdown of sales between cash and credit (Hint: show December 2022 and April 2023 as well). (b) Schedule of cash collected from customers. (12 marks) (12 marks)