Your manager would like you and your team to complete the Budgeted Income Statement based on the following data.

Additional Notes: Note that for the purposes of the financial forecasts and budgets, you can assume all items are GST free. Due to COVID-19, i-Optometry is effectively shut down and the owners are planning to reopen on 1st January 2021. This effectively means year 2020 is a write-off and you can assume there to be no sales, costs, or purchases in December 2020.

CASH BUDGET FOR THE YEAR 2021(in $)
		Jan-21	Feb-21	Mar-21	Apr-21	May-21	Jun-21	Jul-21	Aug-21	Sep-21	Oct-21	Nov-21	Dec-21
A	Opening Balance	0	6132.8	13242.2	397.6	7103.2	12135.4	17466.4	37207	51399.2	36613	44532.4	62679.6
	Cash Inflows
1	Cash Sales-Sunglasses & Prescription glasses	41920	43960	40680	40640	40360	57520	55400	47040	38080	42280	50920	53840
2	Cash sales- eye test	7875	8250	8625	8175	8925	14025	13575	10875	9825	9450	13050	13500
3	Receipts from Debtors	7336	9789	10365	10245	10112	13100	13580	12440	10401	10479	11977	13025
B	Total Cash Inflows	57131	61999	59670	59060	59397	84645	82555	70355	58306	62209	75947	80365
	Cash Outflows
1	Payment to Supplier	18197.2	22088.6	19859.6	19553.4	21563.8	26659	27013.4	23361.8	20437.2	21488.6	24998.8	21143.4
2	Wages to Sales Assistant	8000	8000	8000	8000	8000	8000	8000	8000	8000	8000	8000	8000
3	Wages to Office staff	4500	4500	4500	4500	4500	4500	4500	4500	4500	4500	4500	4500
4	Wages to Optometrists	13000	13000	13000	13000	13000	13000	13000	13000	13000	13000	13000	13000
5	Marketing expenses	75	75	75	75	75	75	75	75	75	75	75	75
6	Insurance Expenses							3000
7	Bank fees			144			144			144			144
8	Office Supplies	90	90	90	90	90	90	90	90	90	90	90	90
9	General Council												792
10	Rent			19200			19200			19200			19200
11	Water, Gas , Electricity expenses			510			510			510			510
12	Owner's Drawings	7136	7136	7136	7136	7136	7136	7136	7136	7136	7136	7136	7136
C	Total Cash Outflows	50998.2	54889.6	72514.6	52354.4	54364.8	79314	62814.4	56162.8	73092.2	54289.6	57799.8	74590.4
D	Closing Balance(A+B-C)	6132.8	13242.2	397.6	7103.2	12135.4	17466.4	37207	51399.2	36613	44532.4	62679.6	68454.2

FactSheet - Data on 2019 Financial Year Sales Volume - Sunglasses Sales Volume - Prescription glasses Service Volume - No. of Eye-tests Jan-2019 175 116 105 Feb-2019 184 121 110 Mar-2019 159 127 115 Apr-2019 164 120 109 May-2019 154 131 119 Jun-2019 205 206 187 Jul-2019 197 199 181 Aug-2019 174 160 145 Sep-2019 130 144 131 Oct-2019 160 139 126 Nov-2019 175 191 174 Dec-2019 188 198 180 Selling Price - Sunglasses Cost Price - Sunglasses $ $ 200.00 60.00 Selling Price - Prescription glasses Cost Price - Prescription glasses $ $ 150.00 80.00 Service Revenue per eye-test $ 75.00 Number of Sale Assistants: Wage Rate per Employee per Month 2. 4,000 $ Number of Office Staff: Wage Rate per Employee per Month 1 4,500 $ Number of Optometrists Wage Rate per Employee per Month 2 6,500 $ Additional Information: Both James and Olivia are owners within the business and each of them draws an amount of $1784 per month. Each owner plans on increasing the drawings to $3568 month starting from January of 2021. As the manager, James keeps a close eye on inventory management and would like to always maintain a monthly ending inventory requirement of 30% of next month's sales. You can assume the beginning inventory for Jan 2021 to be o units for both sunglasses and prescription glasses. All purchases of inventory with the current supplier are on a credit basis, with 70% of the amount settled in the same month of purchase and the remaining 30% settled one month after the month of purchase. You can assume that all credit amounts for purchase of inventory prior to January 2021 have been settled. The business typically will have 80% of their sales of sunglasses and prescription glasses as cash, with the remaining 20% on credit. Of the credit sales, 70% is collected in the month of sales, 20% is collected one month after the sales, and 10% is collected two months after the sales. You can assume that all credit amounts for sale inventory prior to January 2021 have been settled All customers coming in for an eye-test pay for the service in cash 100% of the time. The business has the following non-current assets: In 2019, the business purchased specialised optometry equipment to provide comprehensive eye-tests. The total cost of equipment is $13620 and it is expected to last 5 years. Other office equipment has a total cost of $30480 and depreciates at 20% per annum. Shop Fittings were originally purchased at $64920 and depreciate at 10% per annum. All non-current assets have $0 residual value and are depreciated using the straight-line method of depreciation. Other Fixed Costs: Marketing expense of $900 per annumis paid evenly across 12 months. $3000 of general business insurance is paid in July every year. This insurance covers the period 1st Jan to 31st Dec every year. (100% office) Bank fees works out to be $48 per month and are paid at the start of each quarter. On average, the office supplies are purchased, paid and expensed every month to the amount of $90. General council rates are $792 per year and are usually paid in December every year. The rates cover the period 1st Jan to 31st Dec every year. (50% store: 50% office) Rent is paid at the start of each quarter and works out to be $6400 per month. (80% store: 20% office) Water, gas and electricity are combined under utility expense which adds up to $510 per quarter and is usually paid at the end of each quarter. (75% store: 25% office) "Note: Quarter 1 runs from 1 Jan-31 Mar; Quarter 2 runs from 1 Apr - 30 Jun; Quarter 3 runs from 1 Jul - 30 Sep: Quarter 4 runs from 10ct - 31 Dec. BUDGETED INCOME STATEMENT Jan-21 Feb-21 Mar-21 Apr-21 May-21. Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 TOTAL Gross Profit Other Income: Operating Expenses: Selling Expenses: General & Administrative Expenses: Total Operating Expense Net Operating Profit Non-Operating Income and Expenses Profit (Loss) before income tax