Prepare a monthly Cash Budget in tabular form for the months February, March and April, showing the bank balance at each month’s [login to view URL] following data is available from the various functional budgets prepared at Congo Limited.
January
February
March
April
$’000
$’000
$’000
$’000
Cash sales
1,500- jan
1,850-feb
1,620-mar
1,400-apr
Credit sales
13,800
12,500
11,100
12,900
Purchase for resale
7,900
8,400
7,700
5,900
Salaries and wages
3,000
3,200
3,100
3,000
Overhead expenses
2,500
2,850
3,200
2,730
Other information is available as follows:
1. 5% of all sales on credit are expected to become bad debts. Receipts from credit customers are due in the month following sale.
2. All goods are bought on credit from suppliers who allow 2% cash discount for payment in the month following purchase.
3. Salaries and wages are paid in the month in which they are incurred.
4. Payments for overhead expenses are made in the month following the month in which expenses are incurred. The above overhead budget includes $250,000 per month for depreciation.
5. Two new vans costing $150,000 each, are to be paid for in April.
6. Taxation amounting to $326,000 is to be paid in March.
7. The balance at the bank as at 31st January is expected to be S$1,800,000
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Hi, I have experience of accounting and can do your at low cost. One thing to ask. Do you want only the cash budget of months shown in the project? Waiting for your reply.