Beethoven Company, a limited liability company that was incorporated in X1, has a commercial activity. It buys and sells books and CDs devoted to the learning of foreign languages. (The founder of the company speaks at least 10 languages fluently.)

The balance sheet as at 31 December X1 is presented below.

Balance sheet as at 31 December X1 (in 000 CU)

The following budgeted activities are envisaged for the year X2 (in 000 CU).

1. Sales budget 1,600 (1,400 in cash will be received from customers during the year)

2. Purchases budget (merchandise) 510 (400 will be paid cash to suppliers during the year)

3. Planned merchandise-ending inventory: 130

4. Finance budget repayment of financial debt for 80

5. Salaries and social expenses budget 430 (entirely paid before the end of the year)

6. Advertising expenses budget: 250 (entirely paid before the end of the year)

7. Miscellaneous taxes budget (other than income tax: 120 (entirely paid before the end of the year)

8. Additional fixed assets will be purchased: 300 (entirely paid before the end of the year)

9. Budgeted depreciation expense: 40

The income tax rate is 40% (taxes are paid in the year following that for which the income is calculated)

Required

Prepare the following documents: balance sheet income statement and cash flow budget (forecasted statement cash flows) for the year X2.
 

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Am Shareholdert equity and iabites Foed aso Shareholders equity Capital Accumulated retained sarnings Net income for X1 Equipmant (net valun) 800 710 300 216 Cumert aaet Merchandee invortory Accounts eceivible Cash at bank Total Liabilties Financial debt Accounts payable Income tax payable Total 150 400 110 120 144 250 1,600 1,600 h t scoopriaed N one at wi be diutad Am Shareholdert equity and iabites Foed aso Shareholders equity Capital Accumulated retained sarnings Net income for X1 Equipmant (net valun) 800 710 300 216 Cumert aaet Merchandee invortory Accounts eceivible Cash at bank Total Liabilties Financial debt Accounts payable Income tax payable Total 150 400 110 120 144 250 1,600 1,600 h t scoopriaed N one at wi be diutad