Calculate the firms April Ending cash balance

Calculate the firms May Ending cash balance

Calculate the firms June Ending cash balance

The clothing retailer Summer Delight Ltd felt Covid- 19 with its sales and cash collections effected. The firm also needed to adapt its own purchases to stay afloat. The firm's cash budget needs attention since its cash flow has been strained. Consider the following information from the firm's budget for the second quarter of 2020: April May June Credit sales R150 000 R200 000 R300 000 Credit purchases R250 000 R 80 000 R100 000 Cash disbursements Wages, taxes, and R 15 000 R 13 500 R 13 500 expenses Interest R 9000 R 9000 R9000 Equipment purchases R 77 000 R 35 000 R 40 000 The firm predicts that all of its sales will be collected; 40% of its sales will be collected in the month of the sale, and the remaining 60% will be collected in the following month. Credit purchases will be paid in the month following the purchases. In March 2020 credit sales amounted to R180 000. April May June Beginning cash balance R150 000 Cash receipts Cash collections from credit sales Total cash available Cash disbursements Purchases R278 000 Wages, taxes and expenses R13 500 Interest R9 000 R9 000 Equipment purchases Total cash disbursements Ending cash balance