Prepare the Budgeted Income Statement based on all of the information given above

Sales Budget:

	January	February	March	Quarter
Number of units sold	70,000	30,000	50,000	150,000
Selling price per unit	$45	$45	$45	$45
Sales	$3,150,000	$1,350,000	$2,250,000	$6,750,000

Purchase Budget:

Purchase Budget
For the quarter ended March 31
Particulars	January	February	March	Total
Number of Units sold	70000	30000	50000	150000
Add: Desired Ending inventory @ 50% of next month sale	15000	25000	10000	50000
Total Units needed	85000	55000	60000	200000
Less: Beginning Inventory	10000	15000	25000	50000
Units to be purchased	75000	40000	35000	150000
Purchase Price @ $35 per units	$2625000	$1400000	$1225000	$5250000

Cash Budget

Cash Budget
	January	February	March	Total
Beginning Balance	80000	631000	80000	80000
Add: Cash Collected From Customer	1530000	2430000	1710000	5670000
Total Cash Available	1610000	3061000	1790000	5750000
Cash Disbursment
Selling Expenses	840000	360000	600000	1800000
Rent	35000	35000	35000	105000
Advertising Expenses	104000	104000	104000	312000
Inventory Purchases		2625000	1400000	4025000
Total Cash Disburment	979000	3124000	2139000	6242000
Cash Surplus (Deficit)	631000	-63000	-349000	-492000
Finance
Borrowing		143000	429000	572000
Repayment
Interest
Total Finance		143000	429000	572000
Ending Cash Balance	631000	80000	80000	80000
Expected C ash Collected	January	February	March	Total
Accounts Receivable
December	270000			270000
January	1260000	1890000		3150000
February		540000	810000	1350000
March			900000	900000
Total Cash Collected	1530000	2430000	1710000	5670000