The balance sheet of PoshEdd Company Ltd on $31$ December $2022$ is summarized below:

$\backslash$table$[[,$GHS $\text{'}000,$GHS $000],[$Non$-$current assets,,$700],[$Current assets,,$],[$Inventory of finished goods,$44\mathrm{.}8,],[$Debtors$,200\mathrm{.}0,],[$Cash$,157\mathrm{.}6,],[,402\mathrm{.}4,],[$Current liabilities,$2\mathrm{.}4,],[$Net current assets,,$400],[$Capital employed,,$1,100],[,,]]$

Following an advertising campaign around Christmas, the firm expects sales to rise in $2022$ but it is not known precisely to what level. It is anticipated that $12,000$ items will be sold in the year at an average price of GHS $100,$ though, with the uncertainty that exists over this figure, you have been asked to produce a flexible budget showing the profit if sales are $80\%,90\%,100\%,110\%$ and $120\%$ of $12,000.$ You have also been asked to produce a cash budget showing the balance at the end of each quarter of $2023$ and a budgeted statement of financial position at $\frac{31}{12}\frac{?}{2023},$ both if the $12,000$ sales figure is achieved.

You are told that:

a$)$ The level of demand is expected to be constant during $2022$ though the actual level achieved will not be confirmed until the end of the first quarter. Production will be of $1,000$ items per month during the first quarter, production in the second quarter will be sufficient to bring the end of June stock levels to $2$ months; and in the remaining two quarters, production will match demand.

b$)$ Although it is intended to maintain the average sales price of $GH$$$100$ per item, if

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sales are to reach the $120\%$ level, it is felt that a quantity discount of $10\%$ will need to be given on $20\%$ of sales made.

c$)$ All sales are on credit, $50\%$ of debtors pay two months after sale and $50\%$ pay three months after sale. Sales in $2022$ had been constant throughout the year.

d$)$ Materials cost are $GH$$$20$ per item. In order to achieve this purchase price, stocks have to be bought in bulk on the first day of each quarter and payment made within thirty days. For orders in excess of $GH$$$50,000$ this cost will fall by $5\%.$

e$)$ Labor costs are based on piece $-$ work scales of $GH$$$3$ per item, though the management of Eddposh Ltd have recently been reminded of a productivity bonus of $60$ p per item if monthly production from the workforce of $10$ reaches $1,000$ items. Labor costs are paid one month after they are incurred.

f$)$ Overhead costs are partly fixed and partly variable. The variable element amounts to $GH$$$5$ per item payable in the month incurred. The fixed element is expected to be $GH$$$500,000$ of which $GH$$$100,000$ is depreciation of existing noncurrent assets. Half of the balance is payable monthly, a quarter at the end of June and a quarter at the end of December. If sales reach $120\%$ additional machinery costing $GH$$$240,000$ will need to be purchased on $1/04/2023$ and will be depreciated at $10\%.$

g$)$ Operating stock represents $1,600$ items at unit variable cost. Creditors are for wages.

h$)$ Tax and interest charges can be ignored.