Question 1:

An Enterprises has the following business transaction estimates relating to the final quarter of 2020.

$ $ $

OctoberNovemberDecember

Credit Sales105600 112000 138000

Cash Sales21200 2642031200

Receipts from Accounts Receivable `1.calculatecalculate calculate

Wages282002820028200

Office Furniture600078000

Prepayments 005275

Administrative Expense100001000011900

Depreciation on Office Furniture 250025002500

Receipt of Loan01000000

Credit Purchases420004200058000

Payments of Accounts Payable 2.calculate calculatecalculate

Accrued Expenses006700

Notes

1. Actual Receipts from Accounts Receivable are 70% of the previous months

Credit Sales and the balance of 30% owing is received in the following month.

Credit Sales for September 2020 were $80,000 as they were in August 2020.

Cash Sales were $16,500 in August 2020 and $18,000 in September of 2020.

2. Payment of Accounts Payable is paid 60% of purchases in the month of

Purchase and the remaining 40% in the month following. Purchases in

September 2020 were $36,000.

3. The cash balance at 1 October 2020 was $52,890

Required:

Prepare cash budget month by month for the quarter ending 31 December 2020.

Note that marks will be deducted for each incorrect posting to the cash budget