The following is selected information relating to the operations of Ramblewood Plc a wholesale distributer.

Current Assets as at $31$ March

Cash $8000$

Accounts receivable $20000$

Inventory $36000$

Plant and Equipment net $120000$

Accounts Payable $21750$

Capital Stock $150000$

Retained earnings $12250$

a$.)$ Gross profit is $25\%$ of sales

b$.)$ Actual and budgeted sales data:

March $($actual$)50000$

April $60000$

May $72000$

June $90000$

July $48000$

c$.)$ Sales are $60\%$ for cash and $40\%$ on credit. Credit sales are collected in the month following the sale. The account receivables at March $31$ are a result of March credit sales.

d$.)$ At the end of each month $,$ inventory is to be on hand equal to $80\%$ of the following months sales needs, stated at cost$.$

e$.)$ One half of a month$$s inventory purchases is paid for in the following month. The accounts payable at March $31$ are a result of March purchases of inventory.

f$.)$ Monthly expenses are as follows: salaries and wages, $12\%$ of sales; rent, $$2500$ per month; other expenses $($excluding depreciation$),6\%$ of sales. Assume that these expenses are paid monthly. Depreciation is $$900$ per month $($includes depreciation on new assets$).$

g$.)$ Equipment costing $$1500$ will be purchase in for cash in April.

Required

$1.)$ Income statement for the three months ended June $30.[18$ marks$]$

$2.)$ Balance Sheet as of the June $30[15$ marks$]$