=+LG 4 P4–12 Cash budget: Advanced The Green PLC has projected following unit sales for January 2019 to August 2019. The sales of Green PLC are 30% in cash and the remainder is on a credit for 1 month. It also expects cash receipts from its subsidiaries worth £40,000 in March, £26,000 in April, and £27,000 in June.

The firm pays 20% in cash for all its purchases. The remaining 40% is paid in the following month and the last 40% is paid 2 months later.

Month Sales Purchases January 600,000 400,000 February 500,000 350,000 March 600,000 450,000 April 500,000 475,000 May 700,000 300,000 June 800,000 450,000 July 750,000 300,000 August 800,000 350,000