Mr D Long Cash Budget for the three months ending 28th February 2017 Receipts Cash Sales Credit Sales Sale of Van Total Receipts December 36,000 January February 9,400 7,500 Payments Cash Purchases 7,500 Credit Purchases 17,150 Rent 8,000 8,500 9,000 Wages 5,500 5,750 5.100 Drawings Van Total Payments Net Cashflow Opening Balance Closing Balance Additional information Sales Purchases November 45,000 24,500 December 49,500 25,000 January 55,000 27,000 February 47,000 28,750 March 53,000 25,800 1 20% of Sales are on a cash basis The remainder is received one month after the sale is made 2 30% of purchases are on a cash basis The remainder is paid two months after the purchases are made 3 Mr D Long takes 5,000 drawings from his business each month 4 The company intends to purchase a new van on 1st January for 14,000 paying half in the month of purchase and half in the following month 5 The budgeted bank balance on 1st December 2016 is 8,525