The following actual statement of financial position was prepared for Martin’s Musical Supplies Ltd as at 30 September 2025.

1. Sales forecasts available: October $39  000, November $44 000, December $48  000.
2. Cash sales account for 40% of sales. Credit sales are collected 30% in the month of sale, 50% in the following month and 20% in the second month following the sale.
3. Purchases are expected to be made at the rate of 60% of expected sales for each month and are purchased on credit.
4. Creditors are paid 40% in the month of purchase and 60% in the next month.
5. Inventory is projected to be $37  600 at 31 December 2025.
6. Rent on premises increased to $4950 per quarter from 1 August 2025. This is paid on the last day of the first month of each quarter.
7. Wages of $12  000 per month are normally paid as incurred, although December wages of $2000 are expected be outstanding at 31 December 2025 as a result of the normal payday being a week after the end of the year.
8. The following are paid as incurred: electricity $600 per month, interest on loan $220 per month, and cleaning contractor $400 per month. The loan principal is paid at the rate of $2000 per quarter.
9. Depreciation is charged at 10% per annum on the cost of the furniture and equipment and 15% per annum on the cost of the plant and machinery.
10. A new machine will be purchased for cash on 31 December 2025 for $16  000.
Required

(a) Prepare a budgeted statement of financial performance for the quarter ended 31 December 2025.

(b) Prepare a cash budget for the quarter ended 31 December 2025.

(c) Prepare a budgeted statement of financial position as at 31 December 2025.

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Cash at bank MARTIN'S MUSICAL SUPPLIES LTD Accounts receivable (net) Inventory Prepaid rent Statement of financial position as at 30 September 2025 $ 11 000 Accounts payable $ 12 000 20 000 Accrued wages 1 600 32 000 Bank loan 34 000 1 600 Share capital 40 000 Furniture & equipment 40 000 Retained earnings 13 000 Accumulated depreciation (20 000) Plant & machinery 64.000 Accumulated depreciation (48 000) $ 100 600 $ 100 600 At 30 September, you are also provided with the following information.