Reference no: EM133185719
Question - Master Budget - Chobo limited has just employed you as its management account. The following forecast information for the third quarter of the year 2010 has been provided to you:
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October
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November
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December
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Sales expected
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10,000 units
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12,000 units
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15,000 units
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Price per unit
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GHS 20
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GHS 20
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GHS 20
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Closing stock
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GHS 20,000
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GHS 15,000
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GHS 25,000
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Percentage of gross profit on sales
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40%
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40%
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40%
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Debtors
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GHS 15,000
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GHS 30,000
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GHS 15,000
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Creditors
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GHS 25,000
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GHS 20,000
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GHS 28,000
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Balances shown above are at the end of each month. In addition, the desired balances projected for the end of September 2020 are shown below:
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GHS
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Non-current assets
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500,000
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Depreciation
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120,000
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Stock
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18,000
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Cash balances expected
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80,000
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Unpaid tax at the end of the month
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3,000
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Debtor
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25,000
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Creditor
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30,000
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The following information has also been provided for your use:
1. The company rent part of its apartment at a monthly rental of GHS 25,000 and this is expected to remain the same for the next two years.
2. Selling and distribution expenses are expected to be 25% of each month's sales value.
3. Administration and general expenses are expected to be GHS 20,000 per month but this will grow upwards according to the growth in sales value.
4. Non-current asset is depreciated at 2% per month on cost
5. The company has agreed to produce additional non-current asset at cost of GHS 100,000 in November
6. The company has plans to borrow GHS 80,000 from a friend of the director in November which is payable is a year's time without interest
7. The company pays tax at 10% on net profit every month. This payment is actually done in the month after the month in which profit was declared.
Required - You are required to prepare:
1. Prepare the budgeted statement of Comprehensive Income per month in columnar form for October, November and December 2020
2. Prepare the cash budget per month in columnar form for October, November and December 2020
3. Prepare the budgeted statement of financial position per month in columnar form for October, November and December 2020?