Part (a) (5 marks)

Pool and Spas Galore is in the business of selling Pools, Swim Spas and landscaping. At 1 January 2021, it had a bank balance of $34,000. Provided below are estimates for receipts and payments for the three months ending 31 March 2021.

Credit sales are received as follows:

Month of sale = 50%

Month following sale = 30%

Second month following sale = 20%

Required

Prepare a cash Budget for 2021.

January February March 180,000 300,000 220,000 100,000 Pool and Spas Galore Receipts Credit Sales Proceeds from the sale of old non-curent assets Payments Salaries and wages Supplies New equipment Purchase of plants 80,000 14,500 90,000 16,500 80,000 12,500 120,000 48,000 75,000 92,000