From the following information prepare cash budget for the months April, May, June and July 2019. (12.5 Mark) Month 2019 Sales $ Purchases $ Wages
From the following information prepare cash budget for the months April, May, June and July 2019. (12.5 Mark)
Month
2019
Sales
$
Purchases
$
Wages
$
Sales Expense $
Production Overheads
March
60,000
36,000
9,000
4,000
4,500
April
62,000
38,000
9,000
5,000
3,700
May
65,000
33,000
9,000
4,500
3,900
June
58,000
35,000
9,000
3,500
4,300
July
56,000
39,000
9,000
4,500
4,400
August
60,000
34,000
9,000
4,500
3,800
Further Information:
- Cash balance on 1st April 2019 AED 8,000
- Advance tax of AED 16,000 each is payable in March and July Sales
- Plant costing AED 16,000 is due for delivery in July, payable 10% on delivery and balance after 3 months
- Period of credit allowed by suppliers is two months and to customers one month
- Lag in payment of selling expense is one month.
- Wages are paid 20% in arrears in the following month
- Overheads are paid in the following month.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Cash Budget for April May June and July 2019 Understanding the Problem Cash Balance Starting balance is AED 8000 Inflows Cash sales collections from debtors Outflows Purchases wages sales expenses ove...
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Step: 2
Step: 3
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Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
21st edition
1259119831, 9781259311703, 978-1259119835, 1259311708, 978-0078025587
