Water Play Pty Ltd sells inflatable water toys and other pool play items. You have been asked to prepare budgets for the quarter ended 31 March 2023 for the business based on the following information.

The Balance Sheet for Water Play Pty Ltd as at 31 December 2022 (i.e. previous quarter) was as follows:

Current Assets
Bank	16664
Inventory	2000
Accounts Receivable*	1991
Prepaid insurance**	200	20855
Non-current Assets
Store furniture & fittings	4650
Accumulated depreciation	1480	3170
		24025
Current liabilities
Accounts payable	995.50
Superannuation payable	420
PAYG W/H Payable	1000
GST clearing account	2690	5105.50
Non-current liabilities
Bank Loan	4200	4200
Total liabilities		9305.50
Net Assets		14719.50
Owners' Equity		14719.50

*Credit sales for December were $7964 and 25% of these were still outstanding on 31^st December.

**Credit purchases for December were $9,955 and 10% of these were outstanding on 31^st December.

**Prepaid insurance expires on 28 February 2023. The new insurance policy will be paid on 1 March for 12 months and will be $1320 including GST. Prepaid insurance at 31 March should be $1,100.

Revenue

Income for January to March last year (net of GST) was:

	January	February	March	Total
Revenue	$18,500	$17,980	$23,720	$60,200

Note: Sales for December were $19,910 including GST and 10% of this total was on still outstanding at 31^st December.

Budgeted revenue is to be increased in accordance with organisational policies and procedures for budgeting.However, in view of the business natureManagement has decided to stay at CPI1.8% as appropriate arrangement for current year's budget forecast.

Collection of revenue:

Sales are made up of 60% cash and 40% credit.

75% of the credit sales are collected in the month of sale and the balance are collected in the month following the sale.

Purchases

Credit purchases are estimated to be 50% of sales each month. 90% of purchases are paid for in the month of acquisition and the balance are paid for in the following month.

Monthly Cash expenses:

Rent $1100 Including GST

Leasing $440 Including GST

Stationery $220 Including GST

Electricity $330 Including GST

Loan repayments $120 per month (no GST)

Net Wages Paid $3000 per month. 25% PAYG Withholding tax has been withheld. This needs to be paid by 21^st of each month in accordance with ATO requirements.

Superannuation is 10.5% of gross wages and is paid by 21^st of the following month to employee superannuation funds as a means of managing cash flow.

Quarterly BAS Payment

Water Play lodge and pay their GST quarterly as per the ATO requirements. The liability owing at the end of the quarter is as per the GST Clearing Account.

Non Cash Expenses

Depreciation is $1380 per annum

Loan Interest $102 for the quarter ended 31 March 2023.

Inventory

Inventory is seasonal and expected value on hand on 31 March is $4350.00 excluding GST. Want to make a cash budget for the quarter ended 31 March 2023 showing each month and the totals for the quarter.

1. A Budgeted Income Statement for the quarter ended 31 March 2023
2. A Budgeted Balance Sheet as at 31 March 2023