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