Manal Pvt.Ltd. budgeted incomestatement for 1st quarter 2020

Description

JANUARY

FEBRUARY

MARCH

Sales

285,000

323,000

221,000

Purchases

129,000

168,000

95,000

Wages

35,000

37,000

30,000

Supplies

26,000

23,000

21,500

Utilities

6,500

8,700

7,200

Rent

15,000

12,800

13,600

Insurance

12,000

12,000

12,000

Advertising

24,500

28,500

18,000

Depreciation

20,000

20,000

20,000

Net Profit

17,000

13,000

3,700

Manal Receivable Trend:

30% of Sales are collected in the month of sale, 30% of Sales are collected after the month of sale. 40% of Sales are collected two months after the sale is made

Manal Payable Trend:

10% of Purchases are paid for in the month of purchase, 35% of Purchases are paid after the month of purchase, and 55% of Purchases are paid two months after the purchase is made

Additional Information:

Rent and Insurance expense were prepaid at the end of 2020

All other expenses are paid for in the month they were incurred

November Sales = 195,000November Purchases = 100,000

December Sales = 250,000December Purchases = 165,000

Please see attached Budgeted Income Statement for 1^st Quarter 2020

Required:

Calculate to show Jan-Mar 2020 cash collection from sale, cash payment of purchases and total expenses each month separately on the basis of above given data.