x. In September, Periwinkle plans to dispose of machinery. This is expected to realize $15 000. This machinery will be replaced in August with a new piece of equipment at a cost of $45 000, to be paid in two equal installments in August and September.

xi. The company will receive a tax refund of $6 000 Equipment.

xii. Periwinkle's policy is to maintain a minimum cash balance of $10 000. The company can draw down (In multiples of $1 000) on a line of credit at a rate of $15% per annum. This is repaid when there is surplus cash. Borrowing occurs on the first day of the month, repayments are made on the last day of the month. Requirements:

a) Prepare the following budgets for the quarter from July to September inclusive:

i. Sales budget

ii. Schedule of cash collections

.iii Production budget in units

iv. Raw material purchases budget in kgs and value

v. Labour requirements budget in hours and value.

vi. Production overhead budget

vii. Selling and Administration Budget

viii. Cash budget