Cash flow budgeting (10 marks) Sft Co. budgets $500,000 for sales made. As items 6ft sells are to Plexiglass & Covid-safety anction a workspace are expensive, they give customers 3 months to pay the entire bill. Payments received are as follows: 1st month 40% 2nd month 20% 3rd month 30% Estimated uncollectable 10% 100% Sft also pays $100,000 per month for direct materials, and $300,000 for direct labour. Cash Received Budget March April January February May June Received per month Cash Paid Budget March April February May June January DI DM Paid per month Net Cashflow Carry forward Cash or (Line of Credit) Wait or pay for more DM? Budgeted Income statement (prepared from cash budget) 6ft Co. Budgeted Income Statement For the months January 1 - June 30 20XX $ $ $ $ Reconciliation between cash budget and budgeted income statement July August Cash flow budgeting (10 marks) Sft Co. budgets $500,000 for sales made. As items 6ft sells are to Plexiglass & Covid-safety anction a workspace are expensive, they give customers 3 months to pay the entire bill. Payments received are as follows: 1st month 40% 2nd month 20% 3rd month 30% Estimated uncollectable 10% 100% Sft also pays $100,000 per month for direct materials, and $300,000 for direct labour. Cash Received Budget March April January February May June Received per month Cash Paid Budget March April February May June January DI DM Paid per month Net Cashflow Carry forward Cash or (Line of Credit) Wait or pay for more DM? Budgeted Income statement (prepared from cash budget) 6ft Co. Budgeted Income Statement For the months January 1 - June 30 20XX $ $ $ $ Reconciliation between cash budget and budgeted income statement July August