2) Laura a recent EU Geneva graduate is the CFO at a Toshiro fashions Ltd based in Lisbon and is trying to prepare a cash budget for Q1 2021. She is confident of the following information: - She know the Bank balance at 1 January 2020 which is $50,0000 - Each month 70% of sales are for cash and 30% on credit. The funds for credit sales are received the following month. - The Company buys inventory/purchases on one months credit. It pays for purchases the following month. - The rent is $8,000 for the year and is paid quarterly, in the first week of each quarter. Salaries are paid monthly and the annual payroll is $24,000 - Depreciation is $500 per month - Insurance for the building for the year is paid in January. - $1000 She has following information from the budget for expected sales and purchases (all numbers are $ the group reporting currency):

a) Given the above information please prepare a cash budget by completing the template provided to calculate the funds in the bank at 31.3.2020.

DEC 20,000 JAN 25,000 FEB 30,000 MAR 20,000 Sales Purchases 15,000 18,000 20,000 14,000 JAN FEB MAR INFLOWS OUTFLOWS NET CASHFLOWS 50,000 Bank balance at beginning of month Bank balance at end month