QUESTION 1 Muscat Electronics Company is in the business of buying and selling of different types of electronical products in different region of Oman and provided the following data to understand the cagh position every month start from January to July, 2021. The sales book reported the sales amomt for seven months as below:- January February March April May June July 30.000 28.000 32.000 32.800 34,600 26.800 32.400 The sales reported every month including cash sales and credit sales. Cash sales constitute 40% of total sales collected in the month of sales and the balance is credit sales received in the month following the month of actual sales. The detail of goods purchased in cash during seven months reported in purchase book as below:- January February March April May June July Paragraph 1 12 1141 1 12 14 6 81 1 10 1 16 18 3,500 3.600 4,200 4800 3800 Company also purchased goods de credit from different suppliers. The detail of credit purchase from the month January to July is given below:- January February March 12.000 11,000 13,200 JER April 14.400 May 15.800 July 13.600 9.800 Cash purchases payable in the month of purchases and credit purchases are payable to supplier in two months following the month of credit purchase. It is also found from the accounting records that the company purchased plant and equipment for RO 9,000 in the mouth of March and it is payable in three equal instalmente starting from April Tas department has sent a notice to the company to pay tages of RO 2,000 each in the month of May and Jume The wages and office expenses are paid in the mouth following the month in which wages and office expenses incurred. The detail of wages and office especies is given below: January February March April May June July 2,000 2.230 2.250 2,780 1,900 1.600 2,800 Office Expenses 1.500 1.200 1400 1300 1.100 900 2.000 The selling expenses of the company recorded for the seven months are as follows- January February March April June July 550 650 650 550 $50 The company also incurred administratie panses for the period January to July. The detail of ministrative expenses at given as below. January February March April May June July 200 800 990 1000 1,800 1,300 The company is paying the welling and administration expenses is one month following the month in which is especies incurred ESH (UNITED STATES a The cash balance as on 1" January is RO 15,500. Requirement: The Company has requested you to prepare Cash budget for the period of sir month (January to June) [5 Marks]