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Q No.16 Abbas runs a business which retails high quality clothing. It is particularly busy during the festive season. The budgeted sales and purchases figures for September 2012 to January 2013 are as follows: Rs. Rs. September October November December January Rs. Rs. Rs. Sales 215 000 225 000 310 000 425 000 195 000 Purchases 175 000 190 000 245 000 135 000 135 000 Additional information: 1 50% of sales are expected to be paid for by cash and these customers will receive a 6% discount. 50% of the remaining sales are expected to be paid in the following month and these customers will receive a 3% discount. The remainder will pay 2 months after the sale. 2 30% of purchases are expected to be paid for in the month of purchase and will receive a 4% discount. 40% of purchases are expected to be paid for in the month after purchase and will receive a 2% discount. The remainder are paid for 2 months after purchase. 3 The inventories held on 1 November 2012 are budgeted at Rs.180 000. The inventories held on 31 January 2013 are budgeted at Rs.129 000. 4 Total general expenses are budgeted at Rs.18 000 in November 2012 with an expected 10% rise in December and a 15% reduction (on the December total) in January 2013. All general expenses are expected to be paid in full in the month in which they occur. 5 The depreciation on the non-current assets acquired before November 2012 will be Rs.1 750 per month. 6 On 1 November 2012 Abbas will acquire a new storage system at a cost of Rs.24 000 and will pay 50% of the cost immediately. The remainder will be paid in equal installments over the following 12 months without any interest charges. This new non-current asset will be depreciated at 10% per 6 On 1 November 2012 Abbas will acquire a new storage system at a cost of Rs.24 000 and will pay 50% of the cost immediately. The remainder will be paid in equal installments over the following 12 months without any interest charges. This new non-current asset will be depreciated at 10% per annum on a monthly basis. 7 Abbas will make drawings of Rs.3 000 every month except for December 2012. In this month she expects to draw 1.5% of the month's expected sales. 8 The bank balance at 1 November 2012 is expected to be Rs.34 850. REQUIRED: (a) Prepare a cash budget, in columnar format, for the 3 months commencing with November 2012. (b) Prepare a budgeted income statement (profit and loss account) in as much detail as possible from the given information for this 3 month period ending in January 2013