• HASF Inc a distributor of cosmetics throughout Karachi, is in the process of assembling a cash budget for the first quarter 2015 the following information has been extracted from the company s' accounting records
• 1. All sales divided in equal part between cash and credit sales. 40 % of credit sales are collected in the month of sales 50% are collected in the following month and remaining is uncollectible. Management believes that only 40% of the a/c receivable outstanding on December 2014 will be recovered that the recovery will be in January 2015
• 2. 50% of Purchase are paid for in the month of purchase the remaining 50% are paid for in the month after acquisition
• 3. The December 31 2014 balance sheet disclosed the following selected figures cash 10,000 a/c receivable 75,000 and a/c payable 22,000
• 4. Company Maintains a 20,000 minimum cash balance at all time. Financing is available in 1,000 multiples at an 4% interest rate interest is paid ate the time of repaying principle.
• 5. Additional date
• Jan Feb March
• Sales 150,000 180,000 185,000
• Purchases 90,000 100,000 140,000
• Cash operating cost 31,000 24,000 45,000
• Proceeds from the sales of equipment - 5,000
• Required
• 1. Prepare a schedule of cash collection for Jan through March
• 2. Prepare a schedule of cash disbursement for Jan through March
• 3. Prepare a cash budget for Jan through March with the help of above information
• 4. Prepare an income statement