Powerhouse Fitness Pte Ltd is a retailer of gym equipment with a retail shop at Velocity Novena Square. As at 1 October 2021, the cash at bank balance is $300,000. The company's policy is to maintain a minimum cash balance of $150,000.

Powerhouse Fitness Pte Ltd is developing acash budgetforOctober, November and December 2021,and the following information was gathered:

C % is 7%

D is $70,000

Cash Receig Sales revenue for August and September 2021 are $150,000 and $200,000 respectively. The forecasted sales revenue for October, November and December 2021 are $190,000, $280,000 and $300,000 respectively. Historically, 70% of the nn's sales are in cash, 20% are collected in the next month, and the remaining 10% are collected in the second month following the sale. Monthly commission income is received from the wholesaler based on 0% cf the current month's sale (C is the 6"\" digit of your admin number). Use 6% if the 6'\" dic it of our admin number is 0 3 Dividend income of $15,000 will be received in December 2021. Cash Disbursements The expected purchases are $120,000, $150,000 and $170,000 for the months of October, November and December 2021 respectively. The company pays all its purchases in the month of purchase. a Salaries paid monthly is $D0,000. (D is the 7th digit of your admin number) a Use $70 000 if the 7th di-it of our admin number is 0 Rental of $10,000 is paid monthly. Investment in a joint venture amounting to $500,000 is scheduled in December 2021. Receipts Aug Sep Oct Nov Dec $ $ $ $ $ Sales 150,000 200,000 190,000 280,000 300,000 Cash sales (70%) Lag 1 month (20%) Lag 2 months (10%) Commission income (C%) Dividend income Total Cash Receiptsb) Projected Cash Disbursements Disbursements Oct Nov Dec $ $ $ Cash purchase Salaries ($D0,000) Rental payment Investment Total Cash Disbursements0 Cash Bud - et Add: Beginning cash Ending cash Required Financing Excess Cash Balance