9.21 The following information is available from the financial records of Pascoe Ltd:

Sales

Purchases

April

$360 000

$210 000

May

330 000

240 000

June

300 000

180 000

July

390 000

270 000

• 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 $660 000.
• Cash payments for expenses (other than purchases) are expected to be $144 000 for the month of August.
• Pascoe's cash balance on 1 August was $220 000.

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.