Q Prepare for cash Budget for each of 3months July to September

Additional information: (6) (i) It is expected that 40% of each monthly sales are in cash. The remaining sales are offered with a one-month credit period, which from past experience the firm expects a Jacob Ltd. Just started business in June. The Board of Directors of Jacob Ltd. is concern a 5% of uncollectible debts. about possible cash shortages arising from a number of large payments due in the thi (1) Purchases made from suppliers are paid 50% in the month of the purchase, 30% in quarter of 2020. The following information is made available. the following month, and the balance two months later. June July Aug Sept Oct (iii) General expenses are paid one month in arrears. Included in general expenses is depreciation expense of $10,000. 2020 2020 2020 2020 2020 (iv) Selling expenses, which are paid as incurred, are estimated to be 5% of the monthly $'000 $'000 $'000 S'000 S'000 sales. 300 460 Forecast sales General I expenses Purchases 200 85 125 280 76 170 385 75 220 (v) A new machine is to be installed in July costing $45,000 and will be paid for in September 95 190 100 240 (vi) In September, a dividend of $50,000 is to be paid to ordinary shareholders. (vii) Jacob Ltd. plans to issue 10,000 $0.50 ordinary shares at a premium of $0.20, for cash in August (viii) The cash balance on July is expected to be $5,000. Required: (a) A cash budget for each of the three months July to September 2020. showing the