Old MathJax webview

I'm not sure what is March's sales figure. This question has only April and May sales

The owner of Dreamland company has requested a cash budget for April and May. After examining the records of the company, you find the following: 1. Cash balance on 1 April is $5,000. 2. Total sales for April and May are as follows: April May $50,000 $30,000 60% of the sales are expected to be in cash whilst the other 40% is on credit. The credit sales will be collected one (1) month after sales. 3. Purchases of materials will be made on credit. 50% of the credit purchases will be paid in the month of purchase and another 50% one month after the purchases. Estimated credit purchases are as follows: March $25,000 April $23,000 May $28,000 4. Salaries and wages is $12,000 per month. 5. Rent is $4,000 per month. 6. The company received 5% dividend from unit trust investment of $500,000 in April. 7. A motor van costing $50,000 will be purchased in April. Payment of the motor van will be in 4 equal payments starting May 2019. No minimum cash balance is required. The owner of the company does not have access to short term loans. Required: Prepare a cash budget for April and May. Include supporting schedules for cash collections and cash payments. (15 Marks)