biens (indicates that a solution is to be found in the Lecturer's Guide) 1 Dafa Ltd is a trading company dealing in a single product. It is preparing its annual budget for the twelve months ending 30 June 20X1. So far, the following budgets have been prepared: July-Sept 15,000 12,000 Oct-Dec 18,000 Jan-Mar April-June 21,000 12,000 10,000 14,000 8,000 Sales (at 3 per unit) Purchases (at 2 per unit) Sundry expenses Distribution Administration Depreciation 500 1,000 500 800 1,000 500 2,300 1,100 1,000 500 2,600 200 1,000 500 1,700 2,000 Notes: (a) Sales are made on one month's credit . It may be assumed that debtors outstanding on sales at the end of each quarter are equivalent to one-third of sales in that quar- ter, and that this is received the following quarter. (b) All purchases are for cash. No credit is received. c) Distribution and administration expenses are paid in cash as incurred. (d) The company has no expenses apart from those given. (e) Opening balances at 1 July 20X0 are: Debtors 3,000 Cash 2,000 Inventory 1,000 units Required: Complete Dafa Ltd's annual budget by preparing: (a) a debtors' budget (b) a cash budget, and (c) an inventory budget to show the number of units in inventory at the end of each quarter. of unprofitable trading, was taken over by