Vince Jones, owner of Gadget Plus, had the following Statement of FinancialPosition as at March $31,2023$:Non$-$Current Assets $ $ $Motor Vehicles $50,00020,00030,000$Furniture $36,00011,00025,00086,00031,00055,000$Current AssetsInventory $5,280$Accounts receivable $24,970$Bank $10,79041,04096,040$Current LiabilitiesAccounts payable $9,264$Fixed expenses accrued $636$Non$-$Current LiabilitiesLoan $9,000(18,900)77,140$Financed by:Capital at April $1,202288,590$Net Loss $(4,850)$Drawings $(6,600)77,140$The following information is provided to assist in preparing budgets for thefour months ended July $31,2023$:$1.$ Sales revenue in February and March $2023$ totalled $$16,200$ for $810$ units soldand $$14,000$ for $700$ units sold respectively. Projections for units to be sold fromApril to August are as follows:Apr May Jun Jul Aug$8801,0401,2001,1201,500$The selling price per unit has been constant for the last five years, but it is expectedto increase by $$5$ from April $1,2023.$ Gadget Plus also plans to change its creditarrangement from receipt two months after the sale, since it has been experiencinga high level of bad debts $($only $85\%\%$ of Februarys sales and $80\%$ of Marchssales were expected to be collected$).$From April, $2023,70\%$ of the sales will be on credit, with $4/5$ths of the creditcustomers making payments one month after the sale, to benefit from a $5\%$ cashdiscount. $10\%$ of the remaining debtors are not expected to settle their debts, butit is anticipated that all other amounts due will be collected two months after thesale.PLEASE TURN OVER$32.$ Purchases are to be arranged so that closing inventory for April, May and Junewill be at the usual $40\%$ of the following months sales. The closing inventoryrequirement for July, however, will be $50\%$ of the following months sales, sinceit is expected that suppliers will increase the cost of purchasing each unit from$$15$ to $$16$ in August, $2023\mathrm{.}20\%$ of all purchases are for cash and the remainder are to be paid a month afterthe purchase. It is estimated that Gadget Plus will be granted a cash discount of$$200$ for credit purchases payments made in the month of June.Gadget Plus will also incur a transportation cost of $$0\mathrm{.}50$ per unit purchased,payable as incurred$\mathrm{.}3.$ In May, Vince Jones is expected to invest an additional $$12,000$ into the businessand the monthly cash drawings will be increased by $10\%$ when compared to theprevious year$\mathrm{.}4.$ In June, Vince Jones is expected to take inventory valued at $$300$ for his ownpersonal use$\mathrm{.}5.$ As an incentive to the salesman to reach the projected sales targets, Gadget Plusplans to introduce a commission of $$2$ per unit sold to be paid for additionalsales in excess of $1,000$ units. This incentive will commence in April andcommission is to be paid one month after the sale$\mathrm{.}6.$ Projected fixed expenses are to be incurred as follows: April $$1,600$; May$$1,200$; June $$2,190$; July $$1,990.$ These are expected to be paid as follows: $60\%$in the month incurred and $40\%$ in the following month$\mathrm{.}7.$ Interest on the current loan is $6\%$ per annum, payable monthly. It is projectedthat Gadget plus will borrow an additional $$7,500$ from a relative at a reducedinterest rate of $4\%$ per annum on June $1,2023.$ The first month will be interest$-$free, but monthly interest payments are to commence from July$\mathrm{.}8.$ On July $1,$ furniture costing $$18,000$ will be purchased. A down payment of$$6,500$ cash will be required and monthly payments of $$500$ from August will bemade. Furniture is depreciated at a rate of $10\%$ per annum, straight line method$\mathrm{.}9.$ An insurance premium for $$2,700$ per annum will be paid in April$\mathrm{.}10.$ A vehicle, original costing $$15,000$ will be sold at a profit of $$190$ on April $1.$The vehicle had a book value of $$2,700$ at the time of sale. Depreciation onvehicles is $20\%$ per annum, reducing balance method$\mathrm{.}11.$ The closing inventory at July $31,2023$ is to be determined.PLEASE TURN OVER$4$REQUIRED:$($a$)$ A Purchases Budget in units for the four months to July, $2023(10$ marks$)($b$)$ A Cash Budget for the four months ending July $31,2023.(40$ marks$)($c$)$ A Budgeted Income Statement for the four months ending July $31,2023.(20$ marks$)($d$)$ A Forecast Statement of Financial Position as at July $31,2023.(20$ marks$)$

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tridentlearning$-$m$2.$remote$-$learner.net

Vince Jones, owner of Gadget Plus, had the following Statement of Financial Position as at March $31,2023$:

Non$-$Current Assets

Motor Vehicles

Furniture

Current Assets

Inventory

Accounts receivable

Bank

Current Liabilities

Accounts payable

Fixed expenses accrued

Non$-$Current Liabilities

Loan

Financed by:

Capital at April $1,2022$

Net Loss

Drawings

$\backslash$table$[[$$$,$$$,$$