1 Melanie Street operates a hairdressing salon. Some figures for last year are shown below $ Advertising 2,000 Bank charges 300 Cleaning 2,600 Depreciation Office Equipment 1,000 Depreciation Salon Equipment 2,500 Hairdresser’s wages 60,000 Replacements hairdressing implements 400 Hairdressing materials used 9,000 Interest on loan 5,000 Light and Power 3,000 Office staff wages 20,000 Rent 26,000 Stationery and Postage 500 The budget for next year anticipates the following changes: · Advertising - increase of 2%; · Bank Charges - increase of 3%; · Cleaning - decrease of 10%; · Hairdresser’s wages - increase of 5%; · Replacement hairdressing implements - decrease of 10%; · Hairdressing materials used - increase of 7%; · Interest on loan - decrease of 20%; · Light and Power - increase of 4%; · Office staff wages - increase of 5%; · Rent - increase of 10%; · Stationery and postage - decrease of 5% · Cleaning, light and power are allocated 80% to the salon and 20% to the office · Depreciation of both office equipment and salon equipment will remain unchanged Required: Prepare an operating expenses budget with appropriate classification for the coming year (Marketing expenses, Salon expenses, Administration expenses and Financial Expenses) 2 Expected sales for Fisher Wholesalers are: Units July 14,700 August 15,120 September 15,680 October 16,240 Each month’s closing inventory is to be 150% of the following month’s sales. Average selling price is $30 per unit. Average cost of purchases is $20 per unit Required: Prepare for the 3 months July, August and September: a) a sales budget (in dollars) b) a purchases budget (in units) c) a cost of goods sold budget for the quarter ending 30 th September