Problem:

CASH BUDGET

A Company expecting to have BD $42000$ Cash in

hand on $1-4-2020.$ Prepare Cash Budget for the $3$

months April to June $2020.$

Adjustments:

Credit from Suppliers: We receive a $60-$

day grace period for payment on

purchases.

Sales Collections: All sales are on credit

with a $60\%$ collection rate in the month of

sale and the remaining $40\%$ collected one

month later.

Wage and Rent Payments: These are

paid in the month they are incurred.

Income Tax BD $35000$ is to be paid in june

$2020.$