1. 11.

Calculating the cash budget [LO 18.3] Here are some important figures from the budget of Geelong Books Limited for the second quarter of 2020:

1.
The company predicts that 5 per cent of its credit sales will never be collected, 35 per cent of its sales will be collected in the month of the sale and the remaining 60 per cent will be collected in the following month. Credit purchases will be paid in the month following the purchase.
In March 2020, credit sales were $211 500 and credit purchases were $145 200. Using this information, complete the following cash budget:

April May June

Transcribed Image Text:

Credit sales April May June $336900 $314 500 $378 400 Credit purchases 134 100 152 400 180 300 Cash disbursements Wages, taxes and expenses Interest 48910 62300 67 600 11 320 11 320 11 320 Equipment purchases 79 900 122 000 0