Laura a recent EU Geneva graduate is the CFO at a Toshiro fashions Ltd based in Lisbon and is trying to a cash budget for Q1 2020

She is confident of the following information.

• She know the Bank balance at 1 January 2020 which is $50,0000
• Each month 70% of sales are for cash and 30% on credit. The funds for credit sales
• are received the following month.
• The Company buys inventory/purchases on one months credit. It pays for purchases
• the following month.
• The rent is $8,000 for the year and is paid quarterly, in the first week of each quarter.
• Salaries are paid monthly and the annual payroll is $24,000
• Depreciation is $500 per month
• Insurance for the building for the year is paid in January. - $1000
• She has following information from the budget for expected sales and purchases (all numbers are $ the group reporting currency):

2. Given the above information please make a cash budget to calculate the funds in the bank at 31.3.2020.