AaBbcend Aa Bb AaBbci AaBbc : AA Normal Heading Heading 2 - New Style Question 2 (Marks 10) Kellybrook Gallery is preparing its budgets for the quarter ending 31 March. The following data is provided Actual Sales: Forecast Sales November December $75,800 $102,500 January $85,000 February $60,000 March $65,000 . 40% of all sales are on credit. Estimated collections are 50% are collected in the month of sale, with a 3% discount, 30% in the month following sale, and 18% in the second month after sale. 2% will be written off as Bad Debts Purchases are estimated at 60% of budgeted sales for the following month 80% of these purchases are paid in the month of purchase and a 2% discount is received; 20% of purchases are paid in the following month. Budgeted cash expenses in January are as follows: Advertising Salaries/Wages Rent Interest on Mortgage General Expenses $500 $8,000 $3,740 $475 $2,400 Salaries and wages will increase by 8% as of 1 February, other cash expenses will remain the same for February and March. Drawings by the owner amount to $7,000 per month The net GST Payable for the December quarter is $4,800. This amount is to be paid by the end of January IS 722x Spell Check TI Budgeted cash expenses in January are as follows: Advertising Salaries/Wages Rent Interest on Mortgage General Expenses $500 $8,000 $3,740 $475 $2,400 Salaries and wages will increase by 8% as of 1 February. Other cash expenses will remain the same for February and March. Drawings by the owner amount to $7,000 per month The net GST Payable for the December quarter is $4,800. This amount is to be paid by the end of January WENTWORTH INSTITUTE OF HIGHER EDUCATION CRICOS CODE: 03279M ABN: 71 141 843 218 WIN EDUCATION Then Bank account balance at 1 January is $7,400. Required: Prepare a cash budget for the months of January, February and March. This question can be done on this Word document OR using a Spreadsheet, if you use a spreadsheet"Insert" the Spreadsheet into this exam paper