a)How to Prepare a Cash budget for the Quarter April To June based on the following data and additional information.

Month

Sales($)

Purchase($)

Wages($)

Overheads($)

Month Jan Feb March April May June

Sales 60,000 62,000 64,000 58,000 56,000 60,000

Purchase 36,000 38,000 33,000 35,000 39,000 34,000

wages 9,000 8,000 10,000 8,500 9,000 8,000

Overheads 10,000 9,500 11,500 9,000 9,500 9,000

Additional Information:

1.Cash balance at 1st April is $800,000

2.Sales is 40% cash sales and 60% is collected in the following month.

3.All purchases of a month are paid after 2 months.

4.Land was purchased in April for $85,000

5.Wages of a month are paid the following month. All overheads are paid the same month.

6.Loan repaid in May $16,000

7.Dividend of $75,000 is expected to be received in May.