1. An Enterprises has the following business transaction estimates relating to the final quarter of 2020.

$ $ $

October November December

Credit Sales 105600 112000 138000

Cash Sales 21200 26420 31200

Receipts from Accounts Receivable `1. calculate calculate calculate

Wages 28200 28200 28200

Office Furniture 6000 7800 0

Prepayments 0 0 5275

Administrative Expense 10000 10000 11900

Depreciation on Office Furniture 2500 2500 2500

Receipt of Loan 0 100000 0

Credit Purchases 42000 42000 58000

Payments of Accounts Payable 2. calculate calculate calculate

Accrued Expenses 0 0 6700

Notes

1.Actual Receipts (money in) from Accounts Receivable are 70% of the previous

months Credit Sales and the balance of 30% owing is received in the following

month. For example if we had Credit Sales of $100000 in January we would

expect to receive 70% of that $100000 in February and the balance (30%) in

March.

Credit Sales for September 2020 were $80,000 as they were in August 2020.

Cash Sales were $16,500 in August 2020 and $18,000 in September of 2020.

2. Payment of Accounts Payable is paid 60% of purchases in the month of

purchase and the remaining 40% in the month following. Purchases in

September 2020 were $36,000.

3. The cash balance at 1 October 2020 was $52,890

Required

Prepare a cash budget month by month for the quarter ending 31 December 2020.

Note that marks will be deducted for each incorrect posting to the cash budget.