offer greatly enhanced performance. Its selling price and cost will be the same as for the old model. From the beginning of January Year 6, sales are expected to increase at a rate of 20 machines each month until the end of June Year 6, when sales will amount to 170 units per month. They are expected to continue at that level thereafter. Operating costs including depreciation of 2,000 a month are forecast as follows: Jan Feb Mar Mar May June Operating costs (000) 6 8 10 12 12 12 Dortex expects to receive no credit for operating costs. Additional shelving for storage will be bought, installed and paid for in April, costing 12,000. Corporation tax of 25,000 is due at the end of March. Dortex expects that trade receivables will take two months to pay. To give their customers a good level of service, Dortex plans to hold enough inventories at the end of each period to fulfil anticipated demand from customers in the following month. The photocopier manufacturer, however, grants one month's credit to Dortex. E (Click here to view the Dortex Ltd's statement of financial position, as at the end of Year 5.) Required: Prepare a cash budget for Dortex Ltd showing the cash balance or required overdraft for the six months ending 30 June Year 6. (Fill in the relevant cells with its corresponding figures. Negative figures should be entered in brackets.) Dortex Ltd The cash budget for the six months to 30 June is: Jan Feb 000 000 Mar June Apr 000 May 000 000 000 Receipts Credit sales Payments Trade payables Operating expenses Shelving Taxation Cash flow Opening balance Closing balance offer greatly enhanced performance. Its selling price and cost will be the same as for the old model. From the beginning of January Year 6, sales are expected to increase at a rate of 20 machines each month until the end of June Year 6, when sales will amount to 170 units per month. They are expected to continue at that level thereafter. Operating costs including depreciation of 2,000 a month are forecast as follows: Jan Feb Mar Mar May June Operating costs (000) 6 8 10 12 12 12 Dortex expects to receive no credit for operating costs. Additional shelving for storage will be bought, installed and paid for in April, costing 12,000. Corporation tax of 25,000 is due at the end of March. Dortex expects that trade receivables will take two months to pay. To give their customers a good level of service, Dortex plans to hold enough inventories at the end of each period to fulfil anticipated demand from customers in the following month. The photocopier manufacturer, however, grants one month's credit to Dortex. E (Click here to view the Dortex Ltd's statement of financial position, as at the end of Year 5.) Required: Prepare a cash budget for Dortex Ltd showing the cash balance or required overdraft for the six months ending 30 June Year 6. (Fill in the relevant cells with its corresponding figures. Negative figures should be entered in brackets.) Dortex Ltd The cash budget for the six months to 30 June is: Jan Feb 000 000 Mar June Apr 000 May 000 000 000 Receipts Credit sales Payments Trade payables Operating expenses Shelving Taxation Cash flow Opening balance Closing balance
