Question 4: Financial Budgeting The following information gives particulars of actual results for May and June and budgeted figures for July to October for Massey Company: C 't I I t t Month Sales am a n eres Expenditure Payments -- s June 99,000 9,000 15,000 July 104,500 9,500 22,000 August 121,000 1 1,000 September 132,000 12,000 18,000 October 1 10,000 10,000 It is found that 10% of sales are cash sales. Credit sales are invoiced on the last day of each month. Of the credit sales, it is found that 80% pay their accounts within one month of the invoice date, and a further 15% pay during the second month after invoice date. The balance is found to be irrecoverable. Inventory, at the end of each month, has been and is required to be 50% of the quantity which is expected to be sold in the following month. The purchase price per unit of inventory is not expected to change from the cost as at the end of June. (Hint: How many units in inventory on 30th June and how much is 5 value of inventory on 30'\" June to help you caicuiate Unit Cost of inventory). Purchases are paid for 20% in the month of purchase and 80% in the following month. Selling and Administrative expenses, including Depreciation of 52,000, are incurred at the rate of $12,000 per month. Payment is made in the month following the month in which the expense is incurred. Balances as at the end ofJune are as follows: Inventory $28,500 Accounts Receivable $99,000 Accounts Payable $44,400 Bank 5 6,000 Required: (i) Prepare a cash budget for the months ofJuly, August, and September. {ii} Prepare a Statement of Financial Performance for July, August, and September. Having completed the above, you will be required to answer the following questions in Canvas