Please need a help. SOS.!!!

Atlanta Tour Company is located in a tourist town on Georgian Bay. The small town is quiet during the winter months but comes alive with tourists from May to October. The company's director is planning for another season of tours to Flowerpot Island, which is attractive because of rock formations on its shoreline that resemble flowerpots. He mentions that customers will pay for a tour to the island where they are left to hike, and that part of the ticket price they have provided with is to ride back later in the day. The tickets are purchased from the boat operator as they board each boat, which can take a maximum of 12 passengers.

For the coming 2012 season, the director is considering selling souvenirs. Hence, when the passengers are returning from the island and leaving the boat, they must walk along the dock and exit at a common spot. Therefore, the plan for the new season is to place a booth selling souvenirs of the island (i.e., a paperweight in the shape of a natural flowerpot) at the end of the dock. Based on a one-month trial run of a similar idea last year, the director estimates 80% of passengers will purchase a souvenir.

The director has predicted the 2012 monthly tour demand (number of passengers) based on prior year experience follows

MAY June July August September October

400 1200 5000 5000 2400 350

As well, he has mentioned that the company can run advertisements in a local newspaper at a cost of $160 per month (payable monthly in advance). He estimates that these ads would increase demand by about 10%.

The director has asked you to analyse and prepare a presentation of the following aspects that in relation to the additional financial data he has indicated:

1. The monthly budgeted income statement for the period ending October 31, 2012.
2. The materials purchases budget for souvenirs.
3. The monthly cash budget for the eight-month period beginning in May (note: the ending monthly cash balance cannot drop below zero resulting in a periodic need for borrowing).
4. The monthly budgeted balance sheets for April 30, 2012, through October 31, 2012.
5. Use the budgeting for planning as well as control.

Additional financial data for summer 2012:

• Tickets for boat tours sell for $20 each. All sales will be in cash.
• Sales price for souvenirs will be $1.50 each. All sales will be in cash.
• Cost of goods sold will be $0.45 per souvenir, payable on account one month after delivery. The supplier requires an advance seasonal estimate, but actual orders can be placed at the beginning of each month for guaranteed same-day delivery; souvenirs are purchased in boxes of 144 units per box.
• Docking fees (for ticket sales and boat docking) are $1,500 per month on a minimum six-month contract, payable monthly in advance.
• Boat rental is $2,500 per month in advance. Boats are rented as needed on one-month contracts. Gasoline is purchased and paid each morning; the total used is $820 per boat each month.
• Wages are $1,800 per month for boat operators and $1,000 per month for souvenir sales employees, paid during the first week of the month following the month worked. Two employees must be hired for the whole month and they will work alternate days to earn half the monthly rate.
• There are no capital expenditures planned for 2012.
• Money can only be borrowed or repaid in multiples of $1,000 at the beginning of the month, at a cost of 1% interest per month. Interest is paid on the first day of the month following the month borrowed.
• The company will end the year with no inventory (units remaining will be donated to a local school) given they have the current year (2012) printed on them and will be of no use the following year (there is no beginning inventory).
• Income taxes and other incidental charges are to be ignored.