Question 2 – Master Budget Chobo limited has just employed you as… Question 2 – Master B

Question 2 – Master Budget Chobo limited has just employed you as… Question 2 – Master BudgetChobo 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: OctoberNovemberDecemberSales expected10,000 units12,000 units15,000 unitsPrice per unitGHS 20GHS 20GHS 20Closing stockGHS 20,000GHS 15,000GHS 25,000Percentage of gross profit on sales40%40%40%DebtorsGHS 15,000GHS 30,000GHS 15,000CreditorsGHS 25,000GHS 20,000GHS 28,000 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: GHSNon-current assets500,000Depreciation120,000Stock18,000Cash balances expected  80,000Unpaid tax at the end of the month3,000Debtor25,000Creditor30,000The following information has also been provided for your use: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.Selling and distribution expenses are expected to be 25% of each month’s sales value.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.Non-current asset is depreciated at 2% per month on costThe company has agreed to produce additional non-current asset at cost of GHS 100,000 in NovemberThe 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 interestThe 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.You are required to prepare:The budgeted statement of Comprehensive Income per month in columnar form for October, November and December 2020 The cash budget per month in columnar form for October, November and December 2020The budgeted statement of financial position per month in columnar form for October, November and December 2020  Accounting Business Managerial Accounting ACCT MCPC614 Share QuestionEmailCopy link