Accounting in Organisations and Society

1. Budgeting (I A) @1353; Ltd produces titanium, steel, and carbon bre bikes. Prepare a cash budget for the months February and March 2022 using the following infon'nationxJ vi) vii} The cash balance at the beginning of February 2022 is $16,250. (I Sales revenue for January 2021 was $450,000; expected sales for February 2022 are $530,000 and for March 2022 are $650,000. All sales for these three months are expected to be on a cash basist Expected purchases in February 2022 are $550,000 and March 2022 are $350,000. The business pays its suppliers 60% of the purchases cost in the same month and the remaining 40% in the month after purchase. There were no purchases made in the month of January 2021 due to enough stock remaining from the previous year.