Preparing Cash Budget for following situation

Slate Traders Ltd. is a wholesaler and retailer of tiles and decorative stone. They sell to a range of hardware stores, building and landscape supply companies. In addition they sell direct to the public. They have provided the following information on their sales, purchases cash payments and cash collections Sales & Revenue Information May July August September (Actual) June (Actual) (Forecast) (Forecast) (Forecast) Sales $108 360 $115 850 $116500 $115 000 $118 000 o It is estimated that 20% of the sales are for cash and 80% are on credit. o of the credit sales - 50% pay their accounts within the month of sale - 30% pay in the month alter sale - 20% pay during the second month aer sale Purchases and Payments Information July August September June (Actual) (Forecast) (Forecast) (Forecast) Purchases $57 000 $58 250 $56 500 $59 400 o All purchases of inventory are made on credit and 40% are paid for in the month they I are purchased and 60% in the following month. a All selling and administrative expenses, including a depreciation charge of $4,000, are incurred at the rate of $12,000 per month. Payment is made in the month in which the expense is incurred, a New machinery costing $18,000 will be purchased in June and the payment will be made in the following month. - Slate Traders has a loan of $360,000, Interest at the rate of 8% per annum is paid quanerly, the next due date for payment is 30 June. Opening Bank Balance 9 The balance of the bank account at 30 June is $56 420 Sales Cash Bud et Ju - Se tember Credit Sales Cash sales Collections current month Collections next month Collections 2nd month Purchases Payments current month Payments following month Selling and Admin Expenses Interest expense New Machin Opening Cash Balance Cash receipts Cash Paients