You are given the following Information for Freewheel Lid At the start of the business IN JANUARY investors put 75,000 share capital into the company The budget for the year to June includes the following forecasts Sales Purchases Wages and in units E Salaries January 4,000 12,000 2,000 February 4,200 13,000 8,000 Merch 4.500 14,000 10,000 April 4,600 18,000 10,000 May 4,500 16,000 70,000 June 5,000 16.000 12,000 The selling price will be 6 per unit for the first 3 months but will increase to & per unit in April 50% of sales are cash, and the remaining 50% are given 2 months credit Purchases are paid for two months after purchase. Wages and salaries are paid for at the end o! each month During January the company purchases machinery of E50,000, fixtures and timings for 15,000 and a small van for 10,000. The machinery will be paid for in 2 equal Instalments in the two months following purchase. The fixtures and finings and the van will be paid for in January. The machinery and motor vehicles will be depreciated at 25% per annum while fixtures and intings will be depreciated at 20% per annum. Additional information 1. The company has closing Inventory of E12,000 2. Rentis 1,500 a month (including rates and insurance) and is paid in the month in which it is incurred 3. Heat and light bills are paid by direct debit at the end of each quarter. The annual heat and light billis 5,000. 4. The total dividend declared for the year up to date is 4,000 payable as follows: an interim dividend of 3,000 will be paid in May, the balance of 1,000 will be paid in October 5. Half of the tar liabilty of E1,000 is payable in June with the balance due in December Required: Prepare the following financial statements for the six months ended in June Cash flow forecast Income Statement Statement of Financial Position