2-  Based on the assumptions below, prepare the company’s cash budget for 2021 50 Points

a) Company’s projected sales for the three months of 2015 as followings: 

b) All Sales are credited: %40 of sales are collected as in form of cash. %30 of sales are credited for 1 month and %30 of it for the next month. Rule: 40;30;30

c) Accounts Receivables by quarter ending 31/12/2019 amounted to 120.000 USD

a) 30.000 USD of Account Receivables belong to November Sales ( 11/2020)

b) 90.000 USD of Account Receivables belong to December Sales ( 12/2020)

d) All purchases are credited:

a) %50 of purchases are paid in advance

b) %50 of purchases are debited

e) Projected Inventories by the end of months are as followings:

f) by the last quarter ( 31/12/2020), Company’s Accounts payable amounted to 50.000 USDg) Cash Balance amounted to 60.000 USD

h)Monthly Fixed Operating Expenses are equal to the %20 of monthly sales.i) Required Cash Balance for each month is set as 25.000 USD

• The company will issue new stocks amounted to 10.000 USD in January, 20.000 USD in February and new bonds amounted to 30.000 in March

j) Company will purchase a machine in January for 50.000 USD for equal 5 instalments

k)- Net Profit is equal to the %25 of Sales

Based on above assumptions and policies

a) Prepare the budget for Collectables from Sales

b) Prepare the budget for Purchases!

c) Prepare the budget of Cash Payment for Purchased)

d) Set the company’s Cash Budget for 2021

December 2020 72.500 USD January 2021 75.000 USD February 2021 77.500 USD March 2021 90.000 USD