E9.21 Cash budgeting LO 9.7 The following information is available from the financial records of Pascoe Ltd: April May June July Sales $360000 330000 300000 390000 Purchases $210000 240000 180000. 270000 Receipts from customers are normally 60 per cent in the month of sale, 30 per cent in the month following the sale, and 8 per cent in the second month following the sale. The balance is expected to be uncollectable. Pascoe takes full advantage of the 2 per cent discount allowed on purchases paid for by the 10th day of the following month.

Purchases for August are budgeted at $600 000, and sales for August are forecast at $660000. Cash payments for expenses (other than purchases) are expected to be $144000 for the month of August. Pascoe's cash balance on 1 August was $220000. Required Prepare a cash budget for Pascoe for August that includes: 1. expected cash receipts during August 2. expected cash payments during August 3. expected cash balance on 31 August.