Project 3Cash budgets and budgeted financial statements (Chapters 4 and 5) Question 1 P. Tiro provides you with the following figures: March actual sales April budgeted sales May budgeted sales June budgeted sales 42 000 39 000 36 000 25 200 Sales are expected to be 70% credit and 30% cash and include GST. Invoices for credit sales are issued at the end of the month. Accounts receivable pay: 70% within 30 days of invoice receiving 5% discount. Discount is recognised in the month it is allowed. 20% within 60 days. 5% within 90 days. 5% bad debts. Accounts receivable balances as at 31 March are $47400. The ageing list shows that this balance is dissected as follows: Month of sale January February March 3 600 14 400 29 400 Purchases (GST inclusive) are paid for in the month in which they are made. Budgeted purchases are: April 24 000 May June 22 800 12 000 Marketing expenses (GST inclusive) are budgeted at 10% of sales and are paid in the month they are incurred. Other expenses are expected to be: April May June 9000 7 200 10 800 Other expenses are paid in the same month they are incurred and include GST except for depreciation. Depreciation is included in other expenses and is $3 000 per month. Equipment will be paid for on 15 June for $30000 (including GST). GST is accounted for by the cash method. Cash balance at 31 March is $48000. Required Prepare a cash budget for April, May and June showing monthly figures. Question 2