Please provide accounts recivable and payable budget for the given data with steps and formulas?
BUDGETING The firm has found from past experience that demand for is highly variable throughout the year, making budgeting a difficult process. In particular, the firm has found in previous years that sales sometimes increase sharply in April each year and then decrease again in October. Your client has provided you with the following sales figures for the last three months (October to December 2022) as well as sales forecasts for each of the next 12 months. (Note: These sales figures are expressed as the number of thousands of UNITS sold - they are not dollar figures. For example, the firm sold 10,000 in October 2022.) 2022 2023 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 10 10 10 10 10 10 14 14 14 14 14 14 10 10 10 You have also been provided with the following information: The sell for $185 each. This price is not expected to change during 2023. All values given to you in the rest of this part of the assignment will be in thousands of dollars. All answers that you give in the budgets should be expressed in terms of the number of thousands of dollars, rather than the number of dollars. For example, in October 2022 the firm sold 10,000 units at a price of $185 each, resulting in total sales of $1,850,000, but you should just enter 1850 (the number of thousands of dollars) in the cash budget. All sales are on credit. 50% of sales are collected the month after the sale, 40% are collected in the second month after the sale, and the remaining 10% are collected in the third month after the sale. Cost of sales each month (the value of inventory used in production) is always 60% of sales. The value of inventory at the end of December 2022 was $260. (Remember, that's the number of thousands of dollars. All dollar values will be given this way from now on.) The firm intends to keep inventory at this level throughout January and February, increase the inventory by 10% by the end of March in anticipation of increased sales in April, and then decrease inventory again to $260 by the end of September in anticipation of decreased sales in October. Purchases in November 2022 totalled $1110 and purchases in December 2022 totalled $1110. All purchases are on credit. 50% of purchases are paid for in the month following the month of purchase, and the remaining 50% are paid for two months after the month of purchase. Operating costs (other than purchases of raw materials, wages and depreciation) are budgeted to be $410 per month. Wages (again, shown in thousands of dollars) are budgeted to be as follows for each of next 12 months. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 310 310 310 362 362 362 362 362 362 310 310 310 The opening cash balance at the beginning of January is $50
