The following budget information relates to Flossy Limited for the three months to 31 March 2007:

3 Capital expenditure to be incurred on 20 February 2007 is expected to amount to £470000.
4 Sales of plant and equipment on 15 March 2007 is expected to raise £30 000 in cash.
5 The cash at bank and in hand on 1 January 2007 is expected to be £15 000.
Required:
Prepare Flossy Limited’s cash budget for each of the three months during the quarter ending 31 March 2007.

Transcribed Image Text:

Budgeted profit and loss accounts: Month 31.1.07 28.2.07 31.3.07 000 000 000 Sales (all on credit) 2000 3000 2500 Cost of sales 1200 1800 1500 Gross profit 800 1200 1000 Depreciation (100) (100) (100) Other expenses (450) (500) (600) (550) (600) (700) Net profit 250 600 300 2 Budgeted balance sheets: Budgeted balances 31.12.06 31.1.07 28.2.07 31.3.07 000 000 000 000 Current assets: Stocks 100 120 150 150 Debtors 200 300 350 400 Short-term investments 60 40 30 Current liabilities. Trade creditors 110 180 160 150 Other creditors 50 50 50 50 Taxation 150 Dividends 200 I I