The following information is given for Nonsuch Inc. Balance Sheet Information as of September 30^th

Current Assets:

Cash$14,000

Accounts Receivable 12,000

Inventory76,320

Equipment, net120,000

Liabilitiesnone

Recent and Expected Sales

September$ 48,000

October57,600

November72,000

December96,000

January 43,200

Credit Sales: Sales are 75% for cash and 25% credit. Assume that credit accounts are all collected in the month following the sale. The accounts receivable on September 30 are the result of the credit sales for September (25% of $48,000). Gross margin averages 30% of sales.

Operating Costs: Salaries and Wages averages 15% of monthly sales; rent 5%; other operating costs, excluding depreciation, 4%.Assume that these expenses are disbursed each month. Depreciation is $1,200 per month.

Purchases: Nonsuch keeps a minimum inventory of $36,000. The policy is to purchase additional inventory each month in the amount necessary to provide for the following months sales. Terms on purchases are 2/10, n/30: a 2% discount is available if the payments is made within 10 days after the purchase; no discount is available if payment is made beyond 10 days after purchase; and the full amount is due within thirty days. Assume that payments are made in the month of purchase and that all discounts are taken. Purchases are 70% of next month's sales. Purchases are recorded at gross and purchases discount is reported on the Income Statement as other Income.

Light fixtures. The expenditures for light fixtures are $720 in October and $480 in November. These amounts are to be capitalized.

Assume a minimum cash balance of $9,600 must be maintained. Assume also that all borrowings are repaid at the end of month and are repaid only when sufficient cash is available. Interest is paid only at the time of repaying principal. The interest rate is 18% per year. Management does not want to borrow any more cash than necessary and repay as soon as cash is available and the bank will only lend in multiples of $1,000.

Required:

Prepare the following:

1)A Schedule of Budgeted Monthly Cash Receipts.

2)A Schedule Budgeted Monthly Cash Disbursements.

3)A Schedule of Budgeted Cash Flow including financing.

4)A Budgeted Income Statement.

5)A Budgeted Balance Sheet.