Reference no: EM131949398

Golden Horn is a sole trader operating as a wholesaler in the paint industry. She is considering expanding the business and needs to know if future cash flows are sufficient to fund the expansion or whether additional external borrowings wilt be needed in part or in full.

All other Wholesalers in the industry offer retail paint shops extended credit terms.

Golden Horn is required to maintain extensive levels of inventory to satisfy customer demands. The paint manufacturers offer the wholesalers credit terms.

The premises are rented and located in an industrial estate. The lease agreement has six years to run with an option to renew for an additional six years ensuring a reasonable level of continuity at the same location. The premises are sublet to a business to defray some of the monthly rental costs.

Distribution of the paint to the retail paint shops is outsourced to the local transport company on a needs basis. This relieves him of maintaining his own tracks and associated labour costs.

Golden Horn is registered for GST, reporting quarterly on an Accruals Basis. The GST Payable per the Balance Sheet ac 31 March is payable by 21 April. The GST rate is 10%.

A balance sheet as at 31 March has been produced and provides the opening balances for the period commencing 1 April.

Required:

Based on your accounting experience and after discussions with the proprietor it was decided that your brief would be to prepare the following:

Prepare month-by-month budgets for the three months ending 30 June 2016:
(a) Sales budget.
(b) Purchases budget.
(c) Cost of Goods Sold budget.
(d) Expenses budget.
(e) Cash Receipts budget.
(f) Cash Payments budget.
(g) Cash Budget.
(h) GST payable ledger account.

All monetary amounts should be rounded to the nearest dollar.

Attachment:- Assignment.rar