hi, could you please help me, to complete cash budget

Question 1 - Budget Preparation Cheap Phones Ltd

Cheap Phones Ltd supplies mobile phones to its customers. You have been given the following information.

• Budgeted sales: 1,600 units November; 1,700 units December: 1,650 units January

• Sales value $200 a unit

• Collections: o 65%inmonth of sale

  o 30%month following

• o 5%not collectible

• Cost of goods sold is 50% of sales

• Ending merchandise inventory is to equal 25% of the following months cost of goods

  sold

• Goods are paid for in the month following purchase

• Other monthly expenses paid for in cash are $17,000

• Monthly depreciation is $6,000

• Ignore taxes

• A minimum cash balance of $135,000 is to be maintained and interest on any

  borrowings is 4% per month

• Any unrecoverable sales amounts are to be carried forward in Accounts Receivable until they can be written off officially at year-end.

Statement of Financial Position October 31 20x2

Assets.

Cash $42,000 Accounts receivable (net of uncollectible amounts) Inventory. $16,000

Inventory $30,000 Property, plant and equipment (net of accumulated depreciation). $125,000 Total assets. $213,000

Liabilities and Equity Accounts payable. $12,000 Issued capital. $157,000 Retained earnings. $44,000 Total liabilities and stockholders equity. $213,000

1.Prepare a Sales Budget for November and December

2.Prepare a Purchases Budget for November and December

3.Prepare a Cash Budget for November and December

4.Prepare the Budgeted Income Statement for November and December

5.Prepare a Budgeted Balance sheet for the end of December

There is no seperate Selling and Admin budget required, but any figures that would be required for this will still be included within the Cash Budget, Income Statement and Balance sheet where applicable