Q.1 budget schedules: the following data apply to the HASF Hardware Store and its 2011 budget Forecast Sales Jan $200,000 Feb $160,000 Mar $180,000 Apr $45,000 Balance Sheet Data December 31,2010 cash $80,000 Account receivable: November sales 45000 December sales 50000 Inventory 54000 Account payable(merchandise) 27000 Other data are as follows: Sales are on credit with 30% of sales collected in the same month after sale ,70% in the second month after sale Cost of goods sold is 70% of sales Other variables costs are 40% of sales paid in the month incurred Inventories are to be 65% of next months budgeted sales requirements Fixed expenses are equal to other variable expense per month; all require cash Credit time period for purchases are 30 days

Required: 1. prepare budget of purchase for each of the first three months of 2011 2. prepare separate budgets of cash receipts and disbursements and cash budget for each of the first three months of 2011 3. prepare a budget income statement for the first quarter of 2011