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$1,500 wages are paid in the month they are earned. Every month, $1,600 in overhead costs are due and paid one month late. The business
$1,500 wages are paid in the month they are earned. Every month, $1,600 in overhead costs are due and paid one month late. The business intends to spend $12,000 on a pre-owned van on November 1st, 2021. Sales are always made on credit, and the business has a 30 -day credit policy. The credit duration allowed is one month, and credit is used for 50% of the purchases. The remaining purchases are for quick settlement. As of October 1st, 2021, the bank amount is $25,000 Prepare a cash budget for the three month period ending 31 December 2021
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