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As the accountant of Silvia Itd, you are preparing the budgets for the three months ending June 30, 1994. You are given the following data.
As the accountant of Silvia Itd, you are preparing the budgets for the three months ending June 30, 1994. You are given the following data. b. All sales are on credit and on average 80% of the sales result in the customer paying in the month of sales, taking 5% settlement discount: 10% pay in the month following sales and 8% in the second month following sales. 2% prove uncollectable c. Goods are purchased in anticipation of sales in the month preceding the sales. Sales are invotved at cost plus 20% d. Suppliers are paid two months after receiving the goods e. Overheads are GH$7,500 a month and are paid as incurred f. The overdrafts as at march 3f. 1994 will be GHc 4,650 You are required to prepare: - Disbursement for purchase for Jan to June, 1994 - Cash collections from customers for Jan to June, 1994 - Cash budget for the three months to June, 1994 showing the budgeted bank balance at June 30, 1994
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