prepare a budgeted statement of financial performance for the year ended 30th June 2022

Online Homework Question - Financial Budgeting - Spring 2021 The following is the Statement of Financial Position summary for Freelance Trading Led on 30th June 2021: Freelance Trading - Statement of Financial Position as at 30 June 2021 Current Assets Cash at bank 12,400 Accounts receivable 125,600 Inventories at Cost $180,000 $318,000 Non-Current Assets Buildings 376,500 Less Accumulated Depreciation 40.000 336,500 Motor Vehicles at Cost 125,000 Less Accumulated Depreciation 17,500 107 500 444,000 TOTAL ASSETS $762,000 Current Liabilities Accounts Payable 96,000 Provision for Dividend 24,000 Provision for Income tax 31,000 151.000 Non-Current Liabilities Mortgage Loan 188,000 188,000 Total Liabilities 339,000 NET ASSETS $421,000 Shareholders' Equity 400,000 Shares of $1 fully paid $400,000 Retained Earnings 23,000 $428,000 Projected transaction data for the year ending 30" June 2022: (a) Expected Sales $750,000 (all sales, are on account). Cost of Goods Sold Is 50% of sales. (c) Marketing and administrative expenses are expected to be 15% of sales (excluding depreciation) and are paid for in cash as incurred. (d) Interest expense is $29,925. (e) Taxation and dividends as listed in the Statement of Financial Position on 30 June 2021 will be paid in full. Repayment of principal of mortgage loan $25,000 Accounts Receivable are expected to grow by 10%. Accounts Payable are expected to grow by 5%. Inventory will grow by 10% Provision for Taxation will be 30% of current profit. Provision for dividend will be 25% of net profit after tax. An Interim dividend will be paid amounting to $10,000 (paid out of retained earnings). Depreciation allowed on buildings is 5% per annum on original cost. (n) Depreciation allowed on vehicles 15% per annum based on opening balance. (0) On 30" June 2022, after the calculation of the depreciation expense for the year, vehicles costing $15,000 with a written down value of $10,000 will be sold for $15,000. (p) A new motor vehicle will be purchased for $20,000 cash on 30" June 2022