Question
JJ Asian Cuisines has been operating the business for more than 2 years. Recently there are few big super markets approached the business for few
JJ Asian Cuisines has been operating the business for more than 2 years. Recently there are few big super markets approached the business for few big contracts. Some local smaller size shops also started trading with the business. The business also sells directly only to end users.
The following estimates have been made with respect to the third quarter of operation in 2021:
Required:
Prepare for JJ Asian Cuisine for three months ending 30 September 2021
1. Schedule of receipts from accounts receivable
2. Schedule of payments from Accounts Payable (packaging)
3. Cash budget
4. Comment on the business cash position
Actual Purchases (Packaging) Actual Sales Cash Credit $19,051.20 $8,164.80 $1,525.00 March March $21,772.80 $9,331.20 $1,765.00 April April $27,216.00 $11,664.00 $2,175.00 May May $32,659.20 $13,996.80 June June $2,638.00 Additional information: $12,765.60 All the grocery purchases are made on credit and paid for in the month following the purchase. Grocery purchases in June were Percentage of purchases (Packaging) on credit 80% Actual Purchases (Packaging) Actual Sales Cash Credit $19,051.20 $8,164.80 $1,525.00 March March $21,772.80 $9,331.20 $1,765.00 April April $27,216.00 $11,664.00 $2,175.00 May May $32,659.20 $13,996.80 June June $2,638.00 Additional information: $12,765.60 All the grocery purchases are made on credit and paid for in the month following the purchase. Grocery purchases in June were Percentage of purchases (Packaging) on credit 80%
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