Prepare a forecasted Cash Budget, a forecasted Income Statement, and a forecasted Balance sheet for the first 6 months of trading.

Tyrion Ltd-Forecast for the six months 1 December 2020 to 31st May 2021 Income 1", December 2020, common (ordinary) share capital invested in the new business, $50,000 January 2021, additional common (ordinary) share capital invested in the new business, $10,000 Forecasted sales: Cash sales each month: Dec $9,500 Mar $18,200 Jan $16,800 Apr $19,500 Feb $17,000 May $19,800 Credit Sales (all on 2 months credit): Dec $3,200, Jan $4,100, Feb $4,800, Mar $5,300, Apr $6,200, May $7,500 Expenditure Forecasted purchases: Credit purchases (all purchases are on I month's credit): Dec $9,800 Mar $14,000 Jan $10,100 Apr $16,800 Feb $12,500 May $18,200. Wages and salaries, $2,800 each month (Dec to May) payable in the month they are due Advertising, $850 each month (Dec to May) payable 1 month after it is due Insurance, $920 for the year, payable in December 2020 Rent (for parking spaces)): $180, (for the 3 months, Dec to Feb) will be payable in January 2021 $180, (for the 3 months, Marto May) will be payable in May 2021 . Closing inventory at 31 May 2021 is forecasted to be $9,000 General expenses $1,020 each month (Dec to May) payable 1 month after it is due Machinery costing $49,000, and a motor vehicle costing $5,200 will be bought (and paid for) in December 2020 Maintenance for machinery, $1,200 each month (Dec to May) payable in the month it is due Depreciation for the 6 months, December 2020 to May 2021 is forecasted to be: Machinery $4,900 Motor vehicle $1,040 Accounting expenses, $1,100 each month (Dec to May) payable in the month it is due Notes: *The company will maintain a minimum cash balance of $1,000 at the end of each month. It can borrow money on notes payable of $500 each, at an annual interest rate of 12%. Management borrows no more than the amount needed to maintain the $1,000 minimum *Borrowing, repayment of principal and payments of interest all take place at the end of the month. *Monthly interest on the unpaid principal will start from January 2021 *The company has agreed to pay back the short term loan in monthly installments of $500, also commencing from January 2021 REQUIRED Prepare a forecasted Cash Budget, a forecasted Income Statement, and a forecasted Balance Sheet for the first 6 months of trading