Question 7 Tommy Chan supplies the following budgeted information relating to his business: August September October November December $ $ $ $ $ Sales 23000 24000 29000 34000 43000 Purchases 12000 13000 15000 24000 35000 4500 4500 4500 6000 6500 Wages Rent 400 400 450 1750 Other expenses 1850 3400 1600 980 450 450 450 450 Depreciation of office equipment 450 It is expected that: the cash balance at 1 October will be $670 inventory at 1 October will be $7000 . inventory at 31 December will be $8000 ten per cent of all sales will be on credit ten per cent of purchases will be for cash debtors will settle their debts in the month following sale creditors will be paid two months after purchase rent is payable every two months in advance wages and other expenses will be paid as incurred. Required Prepare: a a cash budget for each of the three months ending 31 December. b a budgeted income statement for the three months ending 31 December