Prepare budgeted financial statements for the year 2023 after including the following considerations:

• 90% of all sales to customers are on credit.

• Sales are predicted to increase by 25%.

• Inflation costs are expected to cause a decline in the contribution margin ratio of 2%.

• Unless noted otherwise all other fixed costs remain the same.

• Plant, property and equipment fixed assets are depreciated on a straight-line basis.

• Rent is for a warehouse that has a contract for the next ten years.

• A new machine will be purchased for 900 with payment due in full on the date the machine is received. The

  delivery date is set for January 1st 2023 and the machine will be placed into use immediately. The new

  machine will have a ten-year useful life and can be sold at the end of the life for 100.

• The old machine will be sold on December 31, 2023 for 100 with payment due immediately.

• Receivables terms for the period will be 30 days.

• All purchases for direct materials, direct labor and variable manufacturing overhead items have terms of

  payment of 35 days.

• Ending inventory levels will decline by 15.

• The company will have insurance costs of 22 starting at the beginning of the year, which will be paid as

  incurred each month.

• The long-term loan has interest rate of 8% on the average balance outstanding and requires a principle

  repayment of 1000 as of the 31st of December 2023.

• The tax rate 20% with taxes for each year are deferred until the following year.

• Dividends of 50% of profits will declared and paid in 2023.