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prepare a cash budget Leda Timeless Beauty Studio expects the following sales of portraits and head busts in the first semester of 2021: Month January
prepare a cash budget Leda Timeless Beauty Studio expects the following sales of portraits and head busts in the first semester of 2021: Month January February March April May June Sales 132,000 450,000 754,000 5432.500 700,000 100,000 All sales are on credit. Historically, 75 per cent is collected in the month of sale, 20 per cent during the first month following the sale, and 5 per cent in the second month following the sale. The cost of a commissioned portrait or bust averages 80 per cent of sales. All the relative purchases of materials are paid during the month following the purchase. Operating costs of 80,000 are paid each month. On 1" March, the cash balance is expected to be the minimum balance of 150,000. If at any time the closing cash balance is below this limit. money can be borrowed from a local bank in increments of 2,500. This is to be repaid after two months, as capital Plus with an interest rate of 5 per cent on the borrowed money. Requirement a) Prepare a cash budget for the months of March, April, and May
prepare a cash budget
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