Leilani Ma'a owns a car hire business called Ma'a Motors. Leilani comes to you asking for assistance in preparing budgets for the quarter 1 October to 31 December 2020. Following discussion you have noted down the following data. Revenue There are ten core and these are available for hire for each month for the given number of days: Month September October November December Days 30 31 30 The average hire price is $80 per day giving $800 daily revenue fall ton cars are hired out. Although all the cars are available every day, on average they are only hired for 85% of the time. Tourists pay when they collect the car, but business travellers use the credit facility and pay on the 20 of the month following their hire of the car. Based on earlier experience 40% of the hirers are business travellers and the rest (60%) are tourists. Non-Current Assets It is business policy to use the straight line method of depreciation for all non-current assets. The cars when bought two years ago had a cost price of $300,000 with an estimated useful life of five years and a residual value of $100,000 The office equipment which cost $20,000 has an expected life of 6 years with $2,000 residual value. Other The business has a contract with Habib Garages to clean the cars and service them. The monthly fee for these services is $3,000, paid in the month incurred. General costs (including telephone, stationary, ISP provider etc.) are estimated at $400 a month, paid in the month they are incurred. Leilani hires Cheng Xu at $5,000 a month and this is paid on the twentieth of the month in which it is earned. (Ignore PAYE and any other deductions). The depot is leased for a monthly fee of $4,000 and is payable on the first of each month The advertising is estimated at $500 a month and is payable by the 20 of the following month. The annual insurance premium is $15,000 and was paid on 1 June 2020. 115. 112 Assignment 1 2001 The balance of Cash at Bank on 1 October 2020.e $11,750 The Balance of Accounts Payable on 1 October 2020 relating to Advertising was $525 ASSIGNMENT 1, 2001 DATA ENTRY Months in a year Months in a quarter (budget period) Revenue Days for hire September October November December Hireage level Cash collection - Month of sale Month following sale Hire price per day Average daily revenue if all cars hired out 60% 40% OTHER PAYMENTS Monthly $4,000 $500 Depot rent Advertising General (Telephone, Supplies, Utilities, ISP etc)) Maintenance and servicing Wages Annual Insurance premium 12 months (paid 1 June 2020) BALANCE SHEET ITEMS Cash at Bank as at 1 October 2020 Accounts Payable Advertising 1 October 2020 NON-CURRENT ASSETS Cost Expected Life Years Residual Value $ $100,000 $300,000 5 Motor Vehicles Office Furniture and Fittings Straight line method is used for all non-current assets