The trading company "MICHAEL" plans to operate for the next year. The company closed the previous comparable period with the following simplified balance sheet: Assets Value in USD Equities Value in USD Fixed Assets $ 20 000 Owner's equity $ 93 000 Current Assets $ 167 000 Common share $ 65 000 Inventory (merchandise goods) $ 150 000 Retained Earnings $ 28 000 Account Receivables $ 12 000 Liabilities $ 94 000 Cash and cash equivalents $ 5000 Account Payables $ 84 000 Wage Payables $ Tax Payables S 10 000 Total assets $ 187 000 Total equities S 187 000 Based on the market observation and current market experience, the company plans to implement sales revenues in the following months of the coming year, assuming the average value of purchases made by one customer at the level of USD 70. Month January February March April May Average daily number of Number of days monthly customers 15 25 25 24 35 27 70 25 90 25 June 110 25 July 70 26 August 55 26 September 115 25 October 95 25 November 98 24 168 25 December In December of the last year, the sales revenues was amounted at USD 180,000. The company observed that 65% of customers are purchasing merchandise goods for cash or with a payment card, while the remaining 35% buy with a trade credit. Receivables are collected in the medium term over one month (approx. 35 days). Experience of co-operation with customers shows that 3% of the value of sales realized in a trade credit is in fact irrecoverable (unpaid). This is due to the nature of 1 the customers and market conditions. No actions are expected to be taken in the near future that would effectively reduce the level of bad debts. The purchase costs of merchandise goods constitute 63% of the sales value. Purchases are made one month before sale and are paid for in the second month after purchase. In November preceding the forecasted period, purchases were made for USD 70,000. Employee wages expenses consist of a fixed component, totaling USD 12,500 per month, and a variable component, accounting for 3% of sales revenues. These costs are covered in cash at the end of the month. There is no delays with the payment of wages. Fixed costs related to the maintenance of a trade unit, such as rent for renting the facility, leasing fees for commercial equipment, telephone charges totaling USD 22,500 per month. They are paid in cash in a given month. To maintain financial liquidity, the company maintains cash reserves of a minimum value of USD 20,000. If the cash balance drops below a certain level, the company can take out an overdraft secured by a corporate surety with interest of 6% per annum. The interest would be repaid in the next month, and the principal installment, if possible, in the following months. Pursuant to the bank's requirements, the borrowing and repayment of a loan secured with a corporate surety takes place in multiples of USD 1,000. The income tax rate is 15%. This tax is payable in the month following its calculation. Prepare the income statement budget and the cash flow budget of the above trading company for the next financial vear The trading company "MICHAEL" plans to operate for the next year. The company clowd the previous comparable period with the following simplified bula VSD 2800 Owner's oply Find Ab Carral Assets nachf 17 VSD 28000 Ways F Tax Fagaks Total we 157000 Bode the marks aberratim and curresi maket espaies, the company implemele revenues in the following months of the coming your, using the average value of pachases made by one or at the level of USD 70 Avas dalyado el www.ully 15 25 34 March April 35 27 20 25 July Squrke November De 35 116 25 20 26 55 115 168 In December of the last year, the sales revenues was rated at USD 190,000. The compey observed that 60% of customers are purchasing merchandise goods for cash or with a payment cand, while the reining 35% bery with a vede credi Receivables are collected in the radian turn over one month (apprca. 35 days) Experience of co-operation with us shows the 3% of the vase of al alized in a trade credit is in het coverable (paid). This is due to the of the and market condition. No acies are expected to be taken in the war fate that would effectively reduce the level of had d The parchese costs of exchandise geds constine 63% of the sales value Proses are made one meth bee sale and are paid for in the second after paschase. In November preceding the Sced period, perches ware de for LSD 30,000 Employee wages expres consist of a fixed component, totaling S 12.500 per month, and a viable opting for 3% of The card in cash at the end of the month. There is no delays with the paymes of wages. Fised costs relied to the maintenance of a de unit, such ren for renting the facility, leasing fees for comercial equipment, telephone charges tang USD 22.500 per month. They are paid in cash in a given month. To facial liquidity, the company maintains cash reserves of a minium value of USD 20,000. If the cash bala draps below a certain level, the company cake out an avada seared by a cerpericly with inre of pren. The interest would be repid in the next month, and the principal inpossible, in the fallesing months Persent to the bank's respirements the bowing and repayment of a leas secured with a corpore surety a place in tiples of USD. The income tax rate is 15%. This tax is payable in the c following its calculation. Prepare the income as budget and the cash flow budget of the above trading company for the final year. 10:05PM Ente L The trading company "MICHAEL" plans to operate for the next year. The company clowd the previous comparable period with the following simplified bula VSD 2800 Owner's oply Find Ab Carral Assets nachf 17 VSD 28000 Ways F Tax Fagaks Total we 157000 Bode the marks aberratim and curresi maket espaies, the company implemele revenues in the following months of the coming your, using the average value of pachases made by one or at the level of USD 70 Avas dalyado el www.ully 15 25 34 March April 35 27 20 25 July Squrke November De 35 116 25 20 26 55 115 168 In December of the last year, the sales revenues was rated at USD 190,000. The compey observed that 60% of customers are purchasing merchandise goods for cash or with a payment cand, while the reining 35% bery with a vede credi Receivables are collected in the radian turn over one month (apprca. 35 days) Experience of co-operation with us shows the 3% of the vase of al alized in a trade credit is in het coverable (paid). This is due to the of the and market condition. No acies are expected to be taken in the war fate that would effectively reduce the level of had d The parchese costs of exchandise geds constine 63% of the sales value Proses are made one meth bee sale and are paid for in the second after paschase. In November preceding the Sced period, perches ware de for LSD 30,000 Employee wages expres consist of a fixed component, totaling S 12.500 per month, and a viable opting for 3% of The card in cash at the end of the month. There is no delays with the paymes of wages. Fised costs relied to the maintenance of a de unit, such ren for renting the facility, leasing fees for comercial equipment, telephone charges tang USD 22.500 per month. They are paid in cash in a given month. To facial liquidity, the company maintains cash reserves of a minium value of USD 20,000. If the cash bala draps below a certain level, the company cake out an avada seared by a cerpericly with inre of pren. The interest would be repid in the next month, and the principal inpossible, in the fallesing months Persent to the bank's respirements the bowing and repayment of a leas secured with a corpore surety a place in tiples of USD. The income tax rate is 15%. This tax is payable in the c following its calculation. Prepare the income as budget and the cash flow budget of the above trading company for the final year. 10:05PM Ente L