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SECTION B Based on the following information, awer questions 10 to 16 in this section (Show your workings clearly in tabular format and round the

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SECTION B Based on the following information, awer questions 10 to 16 in this section (Show your workings clearly in tabular format and round the figures to se desimal place, if applicable) B Resort has forecasted the following budgeted fears for the second-half of 2021 Month Cash Revenue Credit Rescue Total Revenue July $36,200 $35.000 $91,200 August 37.000 SR SCO 95.500 September 38.000 61.300 99 200 October 39.500 63.000 102.500 November 41.000 64.500 105.500 December 42.500 65.00 102 300 Collections on credit revenue average 70% in a month later and 30% after two months. The cost of sales is 35% of the total sales revenue 30 of the purchases is on a cash basis, 70% is on credit and will be paid in the month following the purchases. Other budgeted expenses are shown below Expenses October Norimber December Salaries and wages $22.000 $32.000 $22.000 Insurance 1.500 1.500 1,500 Utilities 12.450 13.550 13.00 Miscellaneous 7.500 7.00 9.200 Depreciation 6900 6,500 Interest 1.500 1.500 1.500 Note that the salaries and wages, utilities, miscellaneous and interest expenses are paid in cash each month as they are incurred. The insurance expense of $18,000 is paid in October each year in advance for the whole year The resort financed is furniture and equipment from bank and makes monthly repayments of 10. What is budgeting? (4 marks) 11. What is the use of a cash budget 14 marks) 12. What will be shown in a cash budget statement! (4 marks) 13. What financial statement(s) will depreciation appear in! (6 marks) 14. How will "depreciation be treated in the financial statement(s) mentioned in your answer of question 137 (6 marks) 15. Wat "depreciation be appeared in the cash budget? Please explain (4 marks) 16. Prepare Resort's cash budget for the month of October November and December. The ending cash balance on 30 September 2001 is estimated to be 59,200 (20 marks) End of Paper- HST 4015

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